23 CAR § 371-504 – Tax liability

(a)
1. (1) Proceeds of a lottery prize are subject to federal and Arkansas state income tax.
2. (2) Each United States resident who is to receive a payment of winnings greater than six hundred dollars ($600) shall furnish to the Office of the Arkansas Lottery the information required on the Internal Revenue Service Form W-2G (or any other form required by the Internal Revenue Service) including but not limited to the winner's:
  1. (A) Name;
  2. (B) Address; and
  3. (C) Social Security number.
(b) This disclosure is mandatory and the authority for such disclosure is 42 U.S.C. § 405(c)(2)(C), 26 C.F.R. § 31.3402(q)-1(e), and Arkansas Code § 23-115-403.
(c) A winner's Social Security number will only be used for the purpose of transmitting the prize amount to the appropriate taxing authorities and identifying individuals subject to debt setoff procedures set forth in 23 CAR § 371-513.