Lisa has had luck over the years, this is her 5th time winning the lottery. In the past

she has had pools of community tickets and always shared winnings with those in the

pool without question. Lisa plans to keep playing the lottery, using pools with

different groups of friends and insists she will hit another big jackpot in her life. Her

question for you.... should she form an S Corporation and make members of the pool

shareholders? What are the tax and logistical considerations that would need to be

discussed if she were to use an S-Corporation as a passthrough for future lottery

activities?

QUESTION: What sections of the I.R.C. are applicable to the situation.