Final answer:
The claim that a lottery prize transferred to a charity or government organization is excluded from gross income if it does not exceed 30 is false, as IRS regulations do not provide an automatic exclusion based on a percentage.
Step-by-step explanation:
The statement that if a lottery prize winner transfers the prize to a qualified government unit or nonprofit organization, then the prize is excluded from the winner's gross income if the amount does not exceed 30, is False. According to Internal Revenue Service (IRS) guidance, a lottery prize winner generally has to include the fair market value of the prize in their gross income.
However, under certain circumstances, a prize may be directly transferred to a charity or a governmental organization before acceptance, which may then exclude the prize from the prize winner's gross income. These rules are subject to IRS regulations and there is no automatic exclusion based on a specific percentage such as 30.