So who is filing as a pro for their 2006 taxes?

climber · #1 10-02-2006, 05:32 PM

It has become more and more clear what the federal govt's view of online poker is throughout this process.

Not sure what tax implications are going to be--esp for those who expect to play on in worse games next year.

Is outing yourself by reporting and paying the right move if it will establish your profile with IRS and next year you mysteriously have no income and no other job? Figure your taxes and dont report but set the moeny aside and dont touch it?

I've heard all the IRS doesn't care what your income is from as long as you report it but I don't really buy it...any thoughts?

sunpar · #2 10-02-2006, 05:34 PM

I wouldn't worry about it. The legislation targets the institutions that fund online poker, not poker players themselves.

MicroBob · #3 10-02-2006, 05:36 PM

I'm filing as an online-pro for 2006.

And will be doing the same for 2007.

The IRS cannot use tax-records to implicate you.

It contradicts your 5th amendment right against self-incrimination.
You HAVE to pay taxes on your income.
So they can't use that report against you.

That's what it pretty much boils down to.

Technically, drug-dealers and prostitutes and professional hitmen can pay their taxes on their income and that evidence cannot be used against them.

Al Capone didn't get nailed for killing anybody.
He got nailed for failing to pay the taxes for his mob-business.

Claunchy · #4 10-02-2006, 05:37 PM

No, the federal government will not prosecute you for playing online poker, but they will gladly [censored] you for not paying your taxes.

IceColdAces · #5 10-02-2006, 05:44 PM

Pay taxes now? Hahahahahahahahaahahahahhaahahhh.

climber · #6 10-02-2006, 05:45 PM

[ QUOTE ]
Pay taxes now? Hahahahahahahahaahahahahhaahahhh.

[/ QUOTE ]

Frist is going to retire and his pension needs to be funded somehow.

Rick305 · #7 10-02-2006, 07:13 PM

[ QUOTE ]
Pay taxes now? Hahahahahahahahaahahahahhaahahhh.

[/ QUOTE ]

trdi · #8 10-02-2006, 07:39 PM

I don't know anything about your tax system... but I doubt a hitman can pay taxes and write down he got it by killing people. Can you explain that a little more? In most countries in Europe if you got money, they come and ask you where did you get it? And if they find out the money is from criminal activities, you are screwed. They take all money not just the taxes. I really doubt that in USA is any different.

(Of course I know that playing poker is not problematic, but the point of my post is a something else.)

Benholio · #9 10-02-2006, 07:46 PM

[ QUOTE ]
I don't know anything about your tax system... but I doubt a hitman can pay taxes and write down he got it by killing people. Can you explain that a little more? In most countries in Europe if you got money, they come and ask you where did you get it? And if they find out the money is from criminal activities, you are screwed. They take all money not just the taxes. I really doubt that in USA is any different.

(Of course I know that playing poker is not problematic, but the point of my post is a something else.)

[/ QUOTE ]

Actually it works pretty much exactly like that. Heck, in many states you are 'required' to get tax stamps for your drugs if you are a drug dealer.

You don't get arrested for what you put down when you file your taxes, however, NOT paying taxing on illegally gained money is a popular way to prosecute criminals when there isn't enough evidence to put them away on their crimes.

I.Rowboat · #10 10-02-2006, 08:05 PM

Although poker is not my sole source of income, I filed a Schedule C for my poker income for 2005, and I anticipate doing the same for 2006, as my poker income is already higher than it was for 2005. Declaring your poker income is legal, whereas failure to do so is illegal. You need to consult with an accountant to determine if it makes more sense to file as a pro vs. declaring your winnings as income from a hobby. But in either case, the income needs to be declared if it exceeds some small threshold, which I believe is $600.