Feds say Charlestown man had quite the racket going at Suffolk Downs

Federal officials say Suffolk Downs bettors who wanted to avoid taxes on their winnings knew they could count on Gary Boyar to help them out - by cashing in their tickets and filling out the required tax forms with his dead father's social-security number, in exchange for 10% of the receipts.

A federal grand jury in Boston indicted Boyar earlier this month on charges of tax evasion, corruptly endeavoring to impede the IRS and filing false alarms for money he allegedly made at the track between 2004 and 2006.

According to the indictment against him, Boyar, known as a "ten percenter," laundered some $2 million for 985 worth of winning bets at the race track, from people who didn't want the IRS to know they'd won $600 or more on a particular race. Under the alleged scheme, the winners would give him their tickets and he'd cash them in at a special window for large successful bets, in which he used his father's social-security number - but his own name and address - on the required tax forms.

The indictment says Boyar reported no income at all on his 2005 and 2006 tax returns. In 2008, the indictment charges, he filed a 2004 return showing income of just $5,500 - and a demand for a $591.74 refund.

When the feds began nosing around in 2010, the indictment says, Boyar lied to investigators, claiming he'd never been to Suffolk Downs and certainly didn't know anything about fraudulent gambling tax forms.

Innocent, etc.

H/t Boston Business Journal.

Neighborhoods: 

Topics: 

Free tagging: 

AttachmentSize
Boyar indictment0 bytes

Comments

No reason for people like this to even exist

You can claim losses against your wins on your federal return (but not your state return, because Massachusetts is terrible.) Keep your losing tickets! It's the only break you get when the feds take 25% of your $5,000+ hit off the top, and then assess income tax upon it. Took a good chunk out of a $33,000 ticket I cashed in 2009.

If you owe, they (the IRS and Mass Dept of Revenue) will take

If you owe back taxes, child support, or alimony, and you attempt to claim a big prize, the entire amount gets seized to satisfy prior debts if your name pops up as a tax/child support/alimony evader. Hence, if you give to a Joe Schmo ten-percenter, it's on the onus of the ten-percenter to pay the taxes, not the cheat.

As for the "keep the losing tickets," that only works if you itemize your deductions - and the IRS will ask for them if they audit you. (And MA only allows you to deduct the cost of the winning ticket.) If you take the standard deduction with a personal exemption, the deduction against losses scheme won't work.

The other thing: if Uncle Sam takes his 25% cut right off the check, you can use that withholding to offset the taxes you owe. If you're in a lower bracket, you get a lot more back; if you're in an upper bracket, you might still pay, but not as much as you would have if Uncle Sam didn't withhold the payment. A couple of years ago, I had an over $5K ticket; Uncle Sam took a lot but my work withholdings offset the taxes, resulting in a decent refund.

Just imagine how many times a

By on

Just imagine how many times a day this will go on with the governors casinos. OOOO we caught one.