Were I to obtain a Irish Lottery ticket (Which is illegal in the US) by a gift from a friend (unsolicited) and I won. (Ha) I would not bring any of the winnings into the USA . But it would be in a savings account over seas in a straw man account. WOULD I OWE ANY TAX TO US GOV. I heard of something like this happening several years ago but not how it was resolved or if the poor smuck was throne in the poky.
2007-02-26 07:55:35 · 2 answers · asked by jonrhoward@sbcglobal.net 1 in Business & Finance ➔ Taxes ➔ United States
There's no deduction for SCAM losses.
BTW, The Emerald Isle does have a tax treaty with the US. If you were to win the real Irish Sweepstakes, they'd notify the IRS of your winnings and you'd be paying the tax.
If the winnings were paid to a "straw man" you'd probably never see it or your straw "friend" again. (A real person is still required to set up the account in the first place, and they'd be the legal owner of the winnings.)
2007-02-26 08:04:30 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Yes you would owe U.S. Income tax, because you won.
You will also owe income tax on the interest earned.
BTW, by putting it in a stawman account overseas and not paying the taxes, that is income tax evasion. A big no-no.
2007-02-26 16:04:29 · answer #2 · answered by David V 5 · 0⤊ 0⤋