Ed Miller's Tax Article

[dogsballs]

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The best method of finding any professional is to get a referral. Check with your friends who use a tax accountant. CPAs are licensed by each state, but can prepare returns for other states. Not all CPAs have a tax practice. Enrolled Agents (EAs, what I am) specialize in tax, have a federal license and can prepare tax returns for any state. There are only a few tax preparers in the US who specialize in gambling. With today's technology (email, scanning documents, and FedEx), most tax preparers prepare returns for individuals who reside outside their own locale.

-- Russ Fox, EA

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So, what do you charge...?

[dogsballs]

While we have peoples attention....

Here's my situation. Bit more complex than many.

I'm a UK citizen, but married to a US citizen and just got my "Adjustment of Status" to Permanent Resident status. It means I'll get a green card, but I only get a SS no. if I go and apply for one. I make my living solely from online poker (tho my US wife works).

What is the story here. If I don't have a SS no., am I outwith the tax reporting requirements? How would that work?

Anyone got any ideas, or are we all confused enough already...? [img]/images/graemlins/confused.gif[/img] [img]/images/graemlins/confused.gif[/img]

[Russ Fox]

I'm a UK citizen...

Your situation is quite complex and depends on a number of factors. I strongly recommend you see a tax professional.

You can find more information on this subject at the IRS' website. You might want to read this article to learn more on the subject.

-- Russ Fox, EA

[Victor]

there was a thread a few weeks ago regarding taxes. in it was a link to a website run by 2 people who supposedly know a lot about taxes. they even wrote a well-known book that has been referenced many times on this site and elsewhere.

unfortunately, i cant remember their names, or the book or the website and i couldnt search for it successfully.

i am sure someone knows these ppl and the book so hopefully it will be posted soon.

[albedoa]

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Does 1/3 of what I make this year rightfully belong to the U.S. government?

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Yes. Unless you go through the steps of renouncing your citizenship, you are subject to the tax laws. Deal with it.

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Legal/illegal doesn't equate to right/wrong.

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Im not sure why paying taxes on gambling winnings is a question of right/wrong, unless you're challenging the entire legitimacy of the tax system. Taxes are a part of life. We all agree implicitly to pay them. Sales, income, property, estate, etc.

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You see, the thing is, he asked the question hypothetically and in a much broader context than your conveniently cropped quote would have people believe. There exists a large population who choose not to just either "deal with it" or get up and leave the country when they disagree with something. Paying taxes is a question of right or wrong because the law does not impose a belief one way or another and instead allows us free-thinkers to form our own opinions and hold our own morals and ethics.

It was obvious to me that mmcd was "challenging the entire legitimacy of the tax system" or at least suggesting that other forum users or lurkers may challenge it similarly, and so I can't help but wonder if you actually read his post and how you missed that if you did. Also, one can disagree with and even disobey the law without "renouncing" his citizenship. I don't know who told you otherwise.

The institution of tax collection and the debate over whether or not it should exist are two totally separate things that are able to coexist and have done so for centuries. This thread seemed pretty mature and fair up until when you declared yourself the grand judge of all opinions, controversial or non.

[danderso8]

hi Russ,

It looks like you've drummed up quite a bit of business for yourself with this thread! I read your poker & taxes articles, and found them very informative.

I do have one thing to point out that many seem to have missed in the Groetzinger case...

The court used "full-time" as one of its reasons that Groetzinger did indeed qualify as a professional gambler. However, that does not mean that being full time is an absolute requirement...that is, the court said, in effect, "Meeting conditions w, x, y, & z qualify a person as a pro gambler." That does not imply that only meeting conditions x, y, & z (while failing to meet w) necessarily disqualifies a person from that status. It would likely raise the bar for them on the other conditions, but I don't see anything in that decision that makes "full-time" a rigid requirement.

--Dan

[Russ Fox]

...but I don't see anything in that decision that makes "full-time" a rigid requirement.

You're correct, of course. However, the IRS is using this languange (full-time) in arguing against professional gamblers. Just because you and I believe the IRS is wrong isn't going to change how they argue cases....

-- Russ

[limon]

how the irs or anyone else would ever know you had money in an offshore account. the money doesn't seem to exist until its moved to america. if you never move it it never exists..it seems like when ur in the casino, you dont have to pay taxes while you are in action only when you cash out.

[baronzeus]

from the cardplayer article:

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3. You must show a profit in three out of five consecutive years. This rule is applied by the IRS to distinguish businesses from hobbies or recreational activities.

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I've been playing poker for 7 months. I treat poker as a business and I play daily. Am I screwed? Or is 1 out of 1 years considered enough?

[mosquito]

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from the cardplayer article:

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3. You must show a profit in three out of five consecutive years. This rule is applied by the IRS to distinguish businesses from hobbies or recreational activities.

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I've been playing poker for 7 months. I treat poker as a business and I play daily. Am I screwed? Or is 1 out of 1 years considered enough?

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It may be, if it is your primary source of income/full time occupation. Most businesses have to pass the hobby test if they are not the primary source of income and/or fail to genrate significant revenue (deductons cancel profits).

I'm no CPA, yada yada, just my understanding from prior reasearch and so on.

"Check with a CPA"