Kimberly Wearin, a woman from Rockaway, New Jersey, decided to sue the state. The woman got all the lottery numbers right in 2009 and won a $14,9 million jackpot. The woman decided to sue the state of New Jersey for a $1.58 million income tax refund.
Kimberly Wearin won the prize on June 4, 2009 and went for the lump sum option. At that time, state lottery winnings were not subject to taxes. Unfortunately, 25 days later, on June 29, 2009, the state of New Jersey enacted a law which dictated that any prize worth $10,000 or more should be viewed as taxable income and the law was applied retroactively to January 1, 2009. Lottery numbers.
Steve Klein, Kimberly Wearin’s attorney, stated that his client paid her applicable tax in April 2010, and filed an amended tax return in which she excluded the lottery prize from her income a month later. However, the Division of Taxation rejected her claim and her administrative appeal.
The Lottery Division, the New Jersey Department of Treasury and the New Jersey Division of Taxation are all named in the lawsuit. The suits names the amendment as a discrimination against Kimberly Wearin and the state of New Jersey stands accused for a breach of contract. The whole point of the matter is to get the $1.58 million income tax refunded.
Jeff Schechter, an attorney in Wearin’s team, stated that the amended return she filed in 2010 was a “conservative” strategy, designed to prevent any interest or penalties. He also stated that their law firm is currently representing many other lottery winners who were affected by the law. Lottery checker.
Meanwhile, representatives from the other side of the suit were not made available for comment. Only Andy Pratt, a Treasury Department spokesperson, stated that “we’re not going to comment on pending litigation.”
The case will be extremely interesting, as many people believe retroactive taxes should be a thing of the past. It is the common American’s opinion that “we are being taxed to death” and this is just another way for state authorities to get more money from honest United States citizens. It is a well known fact that the United States Constitution bans ex post facto laws, but we will just have to wait and see how this one turns out. Lottery winning numbers.
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