Gamblers are buying losing lottery tickets on eBay to commit tax fraud by claiming false gambling losses on their U.S. tax returns. Jeffrey Hoopes, an accounting professor at the University of North Carolina, calls this practice « clearly tax fraud, » as losses can only be deducted if documented by the original player. Analysis of eBay listing data shows sales of these tickets spike before the April 15 tax filing deadline. Congress recently reduced the deductibility of gambling losses to 90% starting in tax year 2026. According to a TIGTA audit, nearly 149,000 people who won more than $15,000 between 2018 and 2020 never filed returns reflecting those winnings, accounting for $13.2 billion in unreported income.
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