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Lottery Winner May Lose to IRS

WASHINGTON, DC – As reported by the Ocala Star Banner: "Lottery winner Richard C. Rotz could come up an $866,621 loser for selling the remaining rights to his annual lottery payments.

"The Internal Revenue Service has ruled the Ocala resident owes that much in additional income taxes from 2000 on the $3.98 million sale, instead of the lower long-term capital gains rate he had claimed.

"Rotz filed a petition asking the U.S. Tax Court here to overturn the IRS determination. The odds may be stacked against him because the court in several other similar lottery cases upheld the IRS rulings.

"…According to Rotz' petition seeking to reverse the IRS ruling, he sold the rights to his remaining annual state lottery payments in 2000 to a lottery asset purchase company - more than a year after winning the lottery. Rotz split a $17,620,000 jackpot from May 13, 1995, with one other winner, according to the Florida Lottery Web site…"

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