Originally Posted by
redietz
Originally Posted by
regnis
For horses, there were a couple of moves. In a state like Illinois, where you are taxed on the gross (unless filing as a pro), the guy cashing the ticket would have to charge the winner an amount equal to the Illinois tax plus a fee for the overall transaction. If the guy cashing it was a pro, he could also get the tax taht had been withheld returned after he filed a return.
Usually, rather than being a pro, he just had fake ID and didn't get a refund. if there was a W-2G and withholding, it was better to have a pro cash it.
That all being said, I had one guy that I defended that was charged with tax fraud for cashing someone else's tickets.
That sounds interesting. What happened and how did he get charged in the first place?
The way I understand it, there were a few guys that you could go to. But they had to have a bit of discretion. You didn’t want everyone to know what you were doing. My guy had a big mouth. I used to constantly warn him to tone it down a little. People have a bad loss or are jealous and make a phone call.
At the same time, some of the old time tellers who had been doing it for years got in trouble. So I don’t know how my guy got caught but I think it was a phone call.
My main argument in defense was that there was no tax fraud because there was no tax due. We showed enough losses to negate any taxes. He got slapped with a small Illinois tax and penalty. Biggest win of his life!!!
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