Monday August 1, 2022 – If you are lucky, you may win the Lottery or find treasure. Or, if you are the IRS, you do both routinely.
That’s because, each time someone wins something, anything, the IRS gets their end.
The recent news of the lucky Illinois resident who hit the $1.3 billion Mega Millions Jackpot is a good case study. The prize is set to be paid out over 30 years – or a lump sum upfront. Either sceanerio has the IRS and the Illinois Department of Revenue racking in a sizeable bounty.
But the lottery isn’t the only boon for the taxing authorities. Found treasure is income. Treasure, like a historic baseball cought by a fan, could be taxable.
Attorney Steven A. Leahy talks about these tax obliations on Toiday’s Tax Talk.
Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649