A friend of mine is currently in a messy situation.
More than likely he will need a lawyer, but I'm hoping
he can avoid the added expense.
In 2002 he went to Atlantic City and won several
slots jackpots. $5000, $2000, $2000.
His only income the past 6 years has been
social security ($500/month).
He is 38 years old and disabled.
He has never filed income tax for the past
6 years. Now in Nov of 2004 he gets a
call from SOCIAL SECURITY saying he owes
several thousand dollars of back taxes and
they are going to garnish his social security
check and they want $2000 up front.

The sad thing about this is he actually put
all the winnings back in the slots during the
months following the win.
My question is would he be able to file
taxes for 2002 that show he lost just as much
as he won??? Or should he just go straight to
a lawyer and get it straightened out. (Very
low budget).
Thanks for any info...

I've never heard of the SSA "calling" and wanting $$$ upfront. If it was a
tax investigation, he would have received a few notices in the mail from
the IRS before any garnishment action. Based on the information you
provided, it smells like a scam. Did the caller say someone would be by to
pick up the $2000, and it should be in the form of cash?

After talking him again today, I think I mis-understood him.
I thought the IRS wanted their money for the winnings. But in
fact its actually SOCIAL SECURITY who wants the money.

I dont know much about social security, but I'm guessing
that any type of income be it gambling or not they intend to
supliment for what they actually pay out. IE.. He won $4000
so SS does not have to pay him until 8 months later
($4000 = $500/month for 8 months). In his case SS added
up the winnings and actually want reimburst!?!?

Sorry for the misunderstanding...