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Lottery Winnings Tax Leads to ID Theft Investigation

12 March 2003

PENNSYLVANIA – As reported by the (Pennsylvania) Intelligencer: "For a woman who never gambles, Kathleen Allinson was surprised to hear from the Pennsylvania Lottery Commission that someone cashed in a winning $2,500 lottery ticket in December using her name and address.

"Now state and federal tax officials want the 59-year-old Bristol Township woman to pay income tax on the winnings, though she says she never won any money.

"….Her husband, David, 64, says the couple received a tax form in the mail from state revenue collectors in January asking them to pay taxes on the winnings.

"…Alex Mohsen, owner of Alex's News and Smoke Shop on New Rodgers Road, who sold the Big 4 game ticket and cashed out the $2,500 in winnings, said the man and woman who claimed the prize showed him photo ID.

"…Mohsen, who later met David Allinson when he came into the store to ask about the winning ticket, said he was not the man who claimed the money.

"…Lt. Chick McGuigan of the Bristol Township police confirmed that a detective is investigating the case. He said the evidence gathered so far validates the Allinsons'

"…Lottery prizes above $600 are taxable by both the state Department of Revenue and the Internal Revenue Service, lottery officials said.

"…The fact that Kathleen's name was submitted with her husband's Social Security number is not enough proof to clear them. [IRS spokesman Bill] Cressman said that as long as the Social Security number matches the last name, the claim is still considered valid."

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