DIY giveaway Plan
pay federal and state taxes on the lottery winnings.
That portion is fully settled and unrelated to how you distribute cash afterward.
U.S. gift tax applies only when the IRS can identify a recipient (name, SSN).
My DIY giveaway plan:
Cash goes to anonymous panhandlers.
don’t know their names, addresses, or social security numbers.
Therefore, no gift tax filings are required.
Record keeping
Keep minimal internal logs: date, bank, approximate drop location, bag number.
This helps if any questions ever arise, but no personal info about recipients is needed.
Bottom line
Incremental, anonymous $45K bag (collect $9k from 5 different banks every other biz day) drop $45k bags of cash over the year are effectively “off the radar” for IRS purposes, aside from the fact that original lottery taxes are already paid. Repeat this for a year or until $10M is given away to white panhandlers who don't look like their doing drugs.
The key factor is anonymity; as long as recipients remain unknown, this plan avoids tax headaches.
