Don't play in groups without a written agreement and a Federal Employer's ldentiftcation Number (for tax purposes). Remember, if your understanding is not in writing, your dream-come-true could become your worst nightmare.

Most lotteries payout each jackpot to only one individual or entity. If you claim all the money, the lottery reports only your Social Security Number to the IRS and only you must pay all the federal income taxes due. If you distribute the winnings among group members, you are additionally liable for gift taxes on amounts over $10,000 given to each group member annually. How do you avoid this mess?