ANSWERS: 3
  • They certainly could. I wouldn't risk it, not only is it illegal, why have that stress?
  • If you win the lottery, taxes will automatically be withheld from your winnings. There ain't no "extra money" to be had. a 1099 has already been filed with your name on it.
  • Sure, besides withholding at an extremely high rate, they will check. Maybe not a full audit. At the same time, there is nothing wrong with having a lawyer use LEGAL methods to minimize your tax liability; it is done all the time. For instance, lawyers can help you invest in depreciating assets. The IRS is pretty sharp with these. They recently closed the loophole that allowed a person who owns racehorses to depreciate their value faster than they actually were worth. There are a lot of things a good lawyer can help you with and if you win the lottery you absolutely should have a shrewd but ethical tax lawyer. So you won't owe, as the tax will be withheld, but you might get some back the next tax year.

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