Would you pay taxes if it meant Regulation instead of banning?

[flytrap]

I don't think it's any secret that many internet poker players avoid paying taxes, or underpay their taxes. What if the industry were regulated, and you needed to provide, say, a Social Security Number to play, therefore the government would have direct access to your history gambling online. Would this be an acceptable trade-off from what it could become, which would be a huge headache trying to play online?

[2easy]

i already pay my taxes on my winnings, and assume that any serious player who makes their income this way does too.

to me this is a non-issue.

[TheMetetron]

[ QUOTE ]
i already pay my taxes on my winnings, and assume that any serious player who makes their income this way does too.

to me this is a non-issue.

[/ QUOTE ]

[spino1i]

Wow sooo many goodie-goodie two shoes here. I for one would not be happy with this option for reasons you discussed.

[2easy]

[ QUOTE ]
Wow sooo many goodie-goodie two shoes here. I for one would not be happy with this option for reasons you discussed.

[/ QUOTE ]


ummm...ok...sure.

[Gildwulf]

If you win at online poker, and you cash out from Neteller to your bank account on a regular basis and don't pay taxes, you are basically a huge moron.

[Ali shmali]

Don't you need to report taxable income to buy houses, cars, credit cards, etc...

[cowboy.up]

If you make any kind of serious money playing poker - yes you are a moron for not reporting. The government will catch up with you eventually, and you'll get smacked with all those taxes anyway (plus nice fines).

[Kneel B4 Zod]

this is a much bigger question for sites than for players.

paying 0% tax instead of, say, 40%

[ProsperousOne]

Here's my position....

Since they're bent on keeping it illegal... screw 'em....

However, if they did make it legit, I'd have no problem paying my fair share...

BTW, who's getting screwed in this whole thing are american casinos... Why should the off shore one's get all the business, and escape from us taxes... seems like that's tact that the PPA should be taking?

[Gregg777]

[ QUOTE ]
i already pay my taxes on my winnings, and assume that any serious player who makes their income this way does too.

to me this is a non-issue.

[/ QUOTE ]

[Gregg777]

[ QUOTE ]
Here's my position....

Since they're bent on keeping it illegal... screw 'em....

However, if they did make it legit, I'd have no problem paying my fair share...

BTW, who's getting screwed in this whole thing are american casinos... Why should the off shore one's get all the business, and escape from us taxes... seems like that's tact that the PPA should be taking?

[/ QUOTE ]

They aren't concerned with enforcing individuals to pay taxes, that is already law.

They want the ability to tax the poker sites...

[ProsperousOne]

[quote
They want the ability to tax the poker sites...

[/ QUOTE ]

then this bill should be regulating sites, no banning them... or am I missing something?

[PoisonIvy]

Yes you are missing something. You can't regulate something that's not in the US. How would you make a business in Japan for example pay US taxes?

[molawn2mo]

[ QUOTE ]
if you win at online poker, and don't pay taxes, you are basically a tax evader .

[/ QUOTE ]

[ QUOTE ]
if you win at online poker , and you cash out from Neteller to your bank account on a regular basis and don't pay taxes, you are more likely to be audited.

[/ QUOTE ]

[ QUOTE ]
if you win at online poker , and you cash out from neteller to your bank account on a regular basis and don't pay taxes, you are basically a huge moron.

[/ QUOTE ]

Just to clarify...
Cashing out from Neteller does not, in itself, create a taxable event. Winning at a table is the taxable event (whether you cash out or not) creating a potentially taxable situation. In any event, it is safe to say that all gambling endeavors require income tax reporting (in the US, at least).

[Albert Moulton]

I won about $6K at SSNL last year and reported it this year on my April taxes for both federal and state tax returns. It was a big chunk of the winnings, but (1) its required to report such winnings, (2) it's the right thing to do, and (3) if I ever end up under any kind of financial or legal scrutiny (i.e. tax audit, divorce, liability claims due to a car accident, etc.) I didn't want any unexplained income floating around in the debit column of my bank account.

I think anybody making over $500/year would be wise to report the income and just pay the taxes. Remember that even a guy like Al Capone ended up in jail for tax evasion because it was relatively easy to prove and punishable by a stiff prison sentence.

[Thremp]

[ QUOTE ]
If you win at online poker, and you cash out from Neteller to your bank account on a regular basis and don't pay taxes, you are basically a huge moron.

[/ QUOTE ]

[DING-DONG YO]

[ QUOTE ]
Just to clarify...
Cashing out from Neteller does not, in itself, create a taxable event. Winning at a table is the taxable event (whether you cash out or not) creating a potentially taxable situation. In any event, it is safe to say that all gambling endeavors require income tax reporting (in the US, at least).

[/ QUOTE ]

All true. However, cashing out from neteller to a US bank creates a paper trail which could later be discovered in an IRS audit. And huge sums of deposits to a US bank will be reported to the IRS by the bank.

And the IRS may not even get around to you for a few years. They could come back around and say "since 2003, you have had these deposits from neteller and IGMpay into your bank account for 150K per year, but your tax return only said you have 30K of taxable income in each of those years. Now you owe us 125K in back taxes +interest+penalties due now".

That isnt an extreme example.

[Blizzardbaum]

Um, yes. Especially because that kind of government regulation would legitimize internet poker in the eyes of a lot B&M players which would, in turn, boost site traffic. Anyone who has ever talked about e-poker at a casino table knows how many people don't do it only because they think its shady.

[Gregg777]

[ QUOTE ]
Yes you are missing something. You can't regulate something that's not in the US. How would you make a business in Japan for example pay US taxes?

[/ QUOTE ]

The only thing you are missing is the round about way the gov't is trying to get to the ability to tax.

Ivy is right, so long as they are out of the country. Which is why the gov't wants to prohibit, but then allow for US online poker sites.

It's so obvious it's pathetic: the gov't isn't getting their cut (Goodlatte has personally said this), and the US gaming companies aren't getting their cut (which they have also said publicly).

So they are going roundabout to get what they both want, eventually...