This should end all of the false claims about paying US taxes on poker

[genesisgkh1]

Another article which states the letter of the law but takes no account of how things work in the real world. I again ask what if you multitable and count each table as a session and count breaks. Does that mean reporting 200 sessions a day? What if I have a full time job but play lots of onine poker and end up with $1,000,000 in wins and $999,000 in loses? What if I make some money but the site folds and I never recieve it?

P.S. Stop throwing around prison. No one goes to prison for reporting their income incorrectly. Truthfully, few go to prison even in blatant cases of fraud. The IRS just wants, and tends to get, its money. Contact a tax professional. They live in the real world.

[Lottery Larry]

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P.S. Stop throwing around prison. No one goes to prison for reporting their income incorrectly.
They live in the real world.

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I'll visit your world sometime and find out why you claim things you obviously know nothing about.

BTW, Ed Miller's betting against your claim, as is the author of the article in my original post. And Al Capone's ghost would like to talk to you.

[mntbikr15]

Stop being bitter at the people that actually have a positive net to declare

[img]/images/graemlins/grin.gif[/img]

[Lottery Larry]

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Stop being bitter at the people that actually have a positive net to declare

[img]/images/graemlins/grin.gif[/img]

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ppllllllbbbbhhhhh!!!

[jaminbird]

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P.S. Stop throwing around prison. No one goes to prison for reporting their income incorrectly.
They live in the real world.

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I'll visit your world sometime and find out why you claim things you obviously know nothing about.

BTW, Ed Miller's betting against your claim, as is the author of the article in my original post. And Al Capone's ghost would like to talk to you.

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You guys are so paranoid. Al Capone intentionally didn't report his income. That is tax evasion and is the only way you end up in jail. If you make a good faith effort to pay your taxes properly, YOU WILL NOT GO TO JAIL. The worst thing that will happen is that you will owe interest and possibly penalties on any amount not paid.

[atomicsoda]

Al Capone went to jail on tax evasion because they couldn't convict him for anything else and needed something they could convict him of. The IRS is not going after losing gamblers. deposits to your bank account are a flag and if you have them prepare your taxes as you should. If you never cash out the IRS is not investigating whether you gambled and lost. They do not ask for the casino players card records of random people to see that they won $500 at slots overall and lost $1500 at slots overall, which your card will show.

[genesisgkh1]

The IRS has not defined a poker session. As far as I know, there are no hard and fast tax rules regarding reporting wins and loses by session, then having your poker site close down before you can cash out your winnings. By the letter of the law, if you play poker regularly, you must report it on your tax return, win or lose. Yet no losing poker player reports anything on their taxes, and NONE of them are in jail. Online poker is new and there are gray areas with regard to the tax code. Too many in this forum claim black and white and only they are correct, but just saying it don't necessarily make it so. DO NOT listen to anyone who says online poker income is not taxable. DO NOT listen to anyone who says you must report $1,000,000 in income and put the $999,000 under itemized deductions. DO NOT listen to anyone who talks about putting someone in jail if they made a good faith effort to pay their taxes. Contact a tax professional.

[NickMPK]

Has anyone ever been convicted of tax evasion because they netted their wins and losses rather than reporting session wins and deducting session losses?

I'm not acquainted with the specific regulations regarding session reporting, only the statutes to the extent I learned them in one semester of income tax in law school. But it seems to me that one could mount a serious challenge to these regulations as unconstitutionally vague if they cause almost every recreational gambler in the county to account for their taxes incorrectly.

[greyhawke54]

I think Atomicsoda has a point. Most people that I know that go to a casino usually lose in the long run. They do however have the ocassional win. Be it hitting a jackpot on a slot or hot run at some table game. These people never worry about the taxes on winning, unless they have to fill out a form (W2G i am assuming). I have even been told (not by a credible source) that this is why a lot of slot machine jackpots are just under $1200. By doing this they are avoiding a the mandatory reporting amount. Supposedly you have to fill out paperwork at the casino on any jackpot over $1200.

I realize that my sample size is small and that the information may be totally incorrect. Please do not flame. Just post corrections. Thanks in advance fro thiis. This is just information that I have been told by some people that I play in a home poker game that regualarly play casion slots. They view any winnings as "found money". Unless they have have to fill out paperwork at the casino when they collect their jackpot.

[atomicsoda]

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I think Atomicsoda has a point. Most people that I know that go to a casino usually lose in the long run. They do however have the ocassional win. Be it hitting a jackpot on a slot or hot run at some table game. These people never worry about the taxes on winning, unless they have to fill out a form (W2G i am assuming). I have even been told (not by a credible source) that this is why a lot of slot machine jackpots are just under $1200. By doing this they are avoiding a the mandatory reporting amount. Supposedly you have to fill out paperwork at the casino on any jackpot over $1200.

I realize that my sample size is small and that the information may be totally incorrect. Please do not flame. Just post corrections. Thanks in advance fro thiis. This is just information that I have been told by some people that I play in a home poker game that regualarly play casion slots. They view any winnings as "found money". Unless they have have to fill out paperwork at the casino when they collect their jackpot.

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I think $600 is the limit now. I noticed a casino in Vegas that capped the high hand jackpots at $599 for this reason. They pay it in chips and it is considered table stakes, so the cap avoids any IRS reporting issues and players don't need to worry about taxes on it.