IRS to poker winners: Pay up!
 

IRS to poker winners: Pay up!

WASHINGTON (AP) — They're not bluffing: Tax collectors will start requiring poker tournaments to report the winners' take.
Casinos and other sponsors of poker tournaments will be required to report winnings of more than $5,000 to the Internal Revenue Service beginning March 4, 2008, the tax agency said Friday.

Sponsors who meet the reporting requirement won't need to withhold federal income tax at the end of a tournament, it said.

If a sponsor does not report winnings, it is responsible for withholding the taxes and sending the money to the IRS, normally 25% of the amount subject to reporting.

The IRS said poker tournament winners must provide their taxpayer identification number, usually a Social Security number, to the sponsor. If the winner fails to do so, the sponsor must withhold federal income at a rate of 28%.

http://www.usatoday.com/news/washing...terstitialskip

Re: IRS to poker winners: Pay up!
 

Old news but never was news.

You mean you have to report income to the IRS!? Find out more in this weeks publication of DUH.

Re: IRS to poker winners: Pay up!
 

Any enterprise that requires you commit tax evasion for it to be a worthwhile career choice ain't much of a career.

Re: IRS to poker winners: Pay up!
 

Does this mean we didn't have to pay taxes before?

HYACHAHCHACHACHACHHCHA

Re: IRS to poker winners: Pay up!
 

this explains why my phone continues to be quiet. they start coming after losers and most of us are royally screwed.

Re: IRS to poker winners: Pay up!
 

hello Yesterday!

Re: IRS to poker winners: Pay up!
 

Some of this is in fact new. Not on the obligation of players to report, but on tournament sponsors to report and possibly withhold taxes from winnings.

Link to IRS press release dated today

The headline on the AP story really distorts what this story is about.

Re: IRS to poker winners: Pay up!
 

just tournaments?

Re: IRS to poker winners: Pay up!
 

Tax question: If a person wins a big tourney for say a million dollars (no Brad Booth joke intended), then went busto trying to play nosebleed stakes in the same fiscal year, would that person still be responsible for paying taxes on his tournament winnings?

Re: IRS to poker winners: Pay up!
 

In general, non-pros can claim gambling losses up to their gambling winnings if they itemize, and pros can net their gambling wins by gambling losses as business income, without having to itemize their deductions, up to their gambling winnings.

I'm more familiar with the general tax rules than with the pro poker player side, so take my word with a grain of salt vs. someone who has specific experience filing returns with significant poker winnings.

The legislation forum should have some threads on these types of questions.

Re: IRS to poker winners: Pay up!
 

Without going back to reread everything I think the "reporting" part was the settlement so that it didn't actually get taken out upon cashing at the tourneys.

It's a better deal bankroll-wise for players and shouldn't concern anyone who pays their taxes.

Re: IRS to poker winners: Pay up!
 

[ QUOTE ]
Any enterprise that requires you commit tax evasion for it to be a worthwhile career choice ain't much of a career.

[/ QUOTE ]

[img]/images/graemlins/confused.gif[/img] i'm slow, what are you saying?

Re: IRS to poker winners: Pay up!
 

[ QUOTE ]
Any enterprise that requires you commit tax evasion for it to be a worthwhile career choice ain't much of a career.

[/ QUOTE ]

[x] Probably sucks at poker

Re: IRS to poker winners: Pay up!
 

[ QUOTE ]
Tax question: If a person wins a big tourney for say a million dollars (no Brad Booth joke intended), then went busto trying to play nosebleed stakes in the same fiscal year, would that person still be responsible for paying taxes on his tournament winnings?

[/ QUOTE ]

No.

Re: IRS to poker winners: Pay up!
 

Re: IRS to poker winners: Pay up!
 

[ QUOTE ]
[ QUOTE ]
Any enterprise that requires you commit tax evasion for it to be a worthwhile career choice ain't much of a career.

[/ QUOTE ]

[img]/images/graemlins/confused.gif[/img] i'm slow, what are you saying?

[/ QUOTE ]

if your not making enough money in your job, and have to hide from the IRS in order to get by (financially), the career is prolly bad.

So if you dont declare taxes b/c if you did you would live in a box, change careers.

So everyone who grinds NL50:

get a college degree.

Re: IRS to poker winners: Pay up!
 

[ QUOTE ]
Tax question: If a person wins a big tourney for say a million dollars (no Brad Booth joke intended), then went busto trying to play nosebleed stakes in the same fiscal year, would that person still be responsible for paying taxes on his tournament winnings?

[/ QUOTE ]

If you file your taxes as a "Professional Gambler", you can deduct cash losses from tourney winings. My accountant deals with a lot of gamblers, and advised me to open an account at the Commerce Casino, and one at the Wynn (I won considerable cash in tourneys at both casinos). When I play, I withdrawl from my account about 2k at a time, and keep records to show cash losses.
When I was a normal guy making regular money, my normal accountant told me that I can only deduct my tourney entry fees against the winnings.
I will know for sure what you can and cannot do, as I am currently getting audited and there are a lot of questions from the IRS regarding the $$ I have won. The only thing I learned is that your accountant can give you wrong, bad advice all day long, and is never held responsible.

Re: IRS to poker winners: Pay up!
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Any enterprise that requires you commit tax evasion for it to be a worthwhile career choice ain't much of a career.

[/ QUOTE ]

[img]/images/graemlins/confused.gif[/img] i'm slow, what are you saying?

[/ QUOTE ]

if your not making enough money in your job, and have to hide from the IRS in order to get by (financially), the career is prolly bad.

So if you dont declare taxes b/c if you did you would live in a box, change careers.

So everyone who grinds NL50:

get a college degree.

[/ QUOTE ]

cuz a degree shows that you are entitled to make a lot of money? I do have 2 bachelor's....and they never made me a dime. College degrees are way overrated, you either got what it takes or you dont. Its really that simple.

Re: IRS to poker winners: Pay up!
 

[ QUOTE ]
[ QUOTE ]
Tax question: If a person wins a big tourney for say a million dollars (no Brad Booth joke intended), then went busto trying to play nosebleed stakes in the same fiscal year, would that person still be responsible for paying taxes on his tournament winnings?

[/ QUOTE ]

If you file your taxes as a "Professional Gambler", you can deduct cash losses from tourney winings. My accountant deals with a lot of gamblers, and advised me to open an account at the Commerce Casino, and one at the Wynn (I won considerable cash in tourneys at both casinos). When I play, I withdrawl from my account about 2k at a time, and keep records to show actual cash losses and wins .
When I was a normal guy making regular money, my normal accountant told me that I can only deduct my tourney entry fees against the winnings.
I will know for sure what you can and cannot do, as I am currently getting audited and there are a lot of questions from the IRS regarding the $$ I have won. The only thing I learned is that your accountant can give you wrong, bad advice all day long, and is never held responsible.

[/ QUOTE ]

fyp for you and your accountant. [img]/images/graemlins/wink.gif[/img]

gg

Re: IRS to poker winners: Pay up!
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Any enterprise that requires you commit tax evasion for it to be a worthwhile career choice ain't much of a career.

[/ QUOTE ]

[img]/images/graemlins/confused.gif[/img] i'm slow, what are you saying?

[/ QUOTE ]

if your not making enough money in your job, and have to hide from the IRS in order to get by (financially), the career is prolly bad.

So if you dont declare taxes b/c if you did you would live in a box, change careers.

So everyone who grinds NL50:

get a college degree.

[/ QUOTE ]

cuz a degree shows that you are entitled to make a lot of money? I do have 2 bachelor's....and they never made me a dime. College degrees are way overrated, you either got what it takes or you dont. Its really that simple.

[/ QUOTE ]

i totally agree about college degrees being gay, but IMO they have value. I for one am a [censored] student, so I guess i just hate the system.