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.