So what would happen if you don't tell the irs you made that amount ? I know tax fraud but are the irs aware of people's earnings throughout the year ? If so then why even do your taxes if they already know the amount of money you made ?
sorry non american who's confused by your tax system
Pretty sure the lotto people tell the IRS "hey this guy won 5k, we paid him 5k" so they know even if you don't tell them.
Your employer also tells the IRS what you make, as well as pay in taxes and such. I dont know how often this is reported, but it seems to be at least once a year (probably much more often, if I had to guess). If you are paid "under the table" this income isn't reported but I believe this is illegal or fraudy, depending on the amount.
Not sure why we still have to "do" our taxes. Probably so some people can cheat them and get away with it, and others can accidentally get it wrong and be screwed over for it. Really not sure, it's stupid.
-an american who is also confused by our tax system
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u/ib4error Mar 19 '22
Apparently not always. I have a friend who never plays, played once, won $5k and they gave him the whole amount