100k to win...

[Port Conway Lane]

Originally Posted by eajinabi

I dont understand how he needs to pay taxes on the 800k he recieved from CD. He/NBC placed a 100k win bet which which ended up being only 8 times the amount of the base wager. IRS comes into place only if its 600 times.

I can see that he would need to pay taxes on the 100k prize money. Whatever it is, the guy did not have to put a single dime of his own money to win all that. Great win for him.

The irs cannot track the type of income you are describing but when he gets a 1099 on the 100k that is a huge red flag.
Gambling income is supposed to be reported no matter how small. Most people don't report it and the irs doesn't persue small potatoes.