http://www.capnken.com/wisdom/2006/02/20/powerball-reporting/ Mon, 02 Aug 2010 07:10:54 +0000 hourly 1 http://wordpress.org/?v=3.0 http://www.capnken.com/wisdom/2006/02/20/powerball-reporting/comment-page-1/#comment-18932 Alvis Jenkins Thu, 19 Nov 2009 00:56:32 +0000 http://www.capnken.com/wisdom/wordpress/?p=584#comment-18932 No state lotteries are required by law to wihhold federal income tax. Why? Because the income generated from the lottery is not "federal income" The tax they unlawfully withhold is claimed to be a tax on federal income. The federal government does not run the state lotteries. In subtitle "A" of Title 26, the subtitle on income taxes, only provides one section for the liability of the income tax and it is on a withholding agent who collects the tax from nonresident aliens and foreign corporations. The IRS does a lot of things that are unlawful and the government allows it to happen. No state lotteries are required by law to wihhold federal income tax. Why? Because the income generated from the lottery is not “federal income” The tax they unlawfully withhold is claimed to be a tax on federal income. The federal government does not run the state lotteries. In subtitle “A” of Title 26, the subtitle on income taxes, only provides one section for the liability of the income tax and it is on a withholding agent who collects the tax from nonresident aliens and foreign corporations. The IRS does a lot of things that are unlawful and the government allows it to happen.

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