IRS Neteller Audits
 

At one time everyone was worried about the audits. It was (so it was said) a sure fire cinch that Neteller player records were being carefully catalogued and IRS computers would be smoking from all the matching.

Some noted that it would be mostly letter audits. But lots of them.

Then there was Executive VP of Marketing and Sales, Dan Star telling the APCW that the DOJ wasn't very interested in individuals. In truth, it does look like DOJ is interested in getting money back from the likes of 888 and Party Gaming. The disgorgement of profits from just these two could be better than $1 Billion.

And the other side of those company profits is gambler losses. Most of us lose. So that's another reason for the DOJ to look at Bookmakers and Casinos rather than players.

So...

By now those audit letters should have been arriving if matching against 2006? It's been 6 months since April 15th. How about 2005? Or do we only think it is the most recent payout that draws attention? Anyone hear anything?

I only got a few bucks in 2006 but stuck my entire Neteller deposits on line 21 anyway. Anybody else paranoid as me?

mrick

Re: IRS Neteller Audits
 

not paranoid at all because i paid my taxes on the income

Re: IRS Neteller Audits
 

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not paranoid at all because i paid my taxes on the income

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Crazy talk imo.

Re: IRS Neteller Audits
 

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not paranoid at all because i lost my ass off

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Re: IRS Neteller Audits
 

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not paranoid at all because i paid my taxes on the income

[/ QUOTE ]

Good for you. What about Richard?

Richard is learning. He isn't doing too bad. He's a part time college student and full time worker. What a drag. But he gets some poker enjoyment and scraped up 5K for his neteller account. Married his high school sweetheart. Tax wise, his life is simple. He doesn't itemize. Life isn't bad.

He played all year and won some and lost some. He had $9000 of winning sessions. Unfortunately, he had $9500 of losing sessions. He withdrew his $4,500 - what with Christmas and all - and books.

Now comes Uncle Sam with his super matching program. Richard has nothing on line 27, misc income. It never occurred to him.

He doesn't itemize, so there isn't any place to deduct his losses. You think he should have claimed $9,000 in income?

I am glad you are hunky-dorey. But what about Richard?

mrick

Re: IRS Neteller Audits
 

Sounds like Richard needs to read a poker book

Re: IRS Neteller Audits
 

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Sounds like Richard needs to read a poker book

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OK. He reads a poker book and gets even better. Now he beats you. Now you are Richard. Poker is a zero sum game.

The point is that "Oh I pay my taxes" is non responsive to the issue. It isn't whether you pay your taxes or don't. Most players don't even think they owe taxes and that's reasonable because most are losers. I would bet 90% of the winners don't report the way Uncle Sam thinks they should. The reporting rules are nutty.

Even the rest have to put up with Uncle Sam digging in a sandbox where the matching can't be relective of the real facts? Agree?

But maybe there isn't any super matching program? Are the audits really coming as Ed MIller wrote back in November 2006? Anybody getting any letters? Anybody hearing anything?

mrick

Re: IRS Neteller Audits
 

[ QUOTE ]
[ QUOTE ]
not paranoid at all because i paid my taxes on the income

[/ QUOTE ]

Good for you. What about Richard?

Richard is learning. He isn't doing too bad. He's a part time college student and full time worker. What a drag. But he gets some poker enjoyment and scraped up 5K for his neteller account. Married his high school sweetheart. Tax wise, his life is simple. He doesn't itemize. Life isn't bad.

He played all year and won some and lost some. He had $9000 of winning sessions. Unfortunately, he had $9500 of losing sessions. He withdrew his $4,500 - what with Christmas and all - and books.

Now comes Uncle Sam with his super matching program. Richard has nothing on line 27, misc income. It never occurred to him.

He doesn't itemize, so there isn't any place to deduct his losses. You think he should have claimed $9,000 in income?

I am glad you are hunky-dorey. But what about Richard?

mrick

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Nice post

Re: IRS Neteller Audits
 

[ QUOTE ]
[ QUOTE ]
not paranoid at all because i paid my taxes on the income

[/ QUOTE ]

Good for you. What about Richard?

Richard is learning. He isn't doing too bad. He's a part time college student and full time worker. What a drag. But he gets some poker enjoyment and scraped up 5K for his neteller account. Married his high school sweetheart. Tax wise, his life is simple. He doesn't itemize. Life isn't bad.

He played all year and won some and lost some. He had $9000 of winning sessions. Unfortunately, he had $9500 of losing sessions. He withdrew his $4,500 - what with Christmas and all - and books.

Now comes Uncle Sam with his super matching program. Richard has nothing on line 27, misc income. It never occurred to him.

He doesn't itemize, so there isn't any place to deduct his losses. You think he should have claimed $9,000 in income?

I am glad you are hunky-dorey. But what about Richard?

mrick

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Richard can pay his taxes or be a tax-evading criminal. It really is that simple. If he can't pay his taxes then he shouldn't play poker. The tax laws are ridiculous and should be changed - I am totally in agreement on that. But when I drive over the speed limit and get pulled over, I expect to get a ticket. Otherwise I wouldn't speed.

Re: IRS Neteller Audits
 

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Richard can pay his taxes or be a tax-evading criminal.

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I doubt Richard even thought about it. You think Richard should pay on an additional $9,000 of income?

On another point, the tax laws won't be changed. No one cares about gamblers. Most gamblers will simply not follow the tax law. I would estimate the compliance rate to be less than 2%. And I am talking honest misstakes.

But it doesn't matter because all those aunts, uncles and grandmas wondering around Las Vegas and winning a session here and losing one there and maybe getting a small W-2G but most of the time not don't have all those transactions in one spot. There isn't any worry.

What about Richard. Should he worry? Do we think this super matching program is really taking place or do we think the DOJ is going after the big fish?

mrick