Re: Ed Miller\'s Tax Article
Financial institutions also report things like interest paid.
BTW, you poker-playing guys with large amounts of unreported income, all it takes is one pissed-off dumped girlfriend or anyone else who has a grudge to drop a dime to the IRS (in return for a percentage of your back taxes, penalties, and interest), and you will have the inquisition at your door.
If the IRS finds you with substantial unreported gambling income, no amount of playing Mickey the Dunce will save your ass. Tax avoidance is legal. Overly enthusiastic tax avoidance gets you penalties and interest. Tax evasion (and failure to report substantial income is tax evasion) can get you the federal slammer and penalties and interest.
If you have unreported gambling income, you better be nice to your girlfriend and anyone else who knows or suspects you are in the chips and not sharing with your uncle.
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