#1
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Money tied up in Neteller, file delay for paying taxes
I have almost all of my poker winnings in neteller from last year, just under $10k (~$9,000). I have not reported this yet and was wondering since it is tied up if I can file for a delay of paying this portion of my taxes and have: "money taken hostage by u.s. government and neteller" as the reason? Anyone else in a similar bind and what do you plan on doing come 'online poker tax d-day' --> April 15th 2007.
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#2
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Re: Money tied up in Neteller, file delay for paying taxes
[ QUOTE ]
was wondering since it is tied up if I can file for a delay [/ QUOTE ] Sadly, while you can usually get an automatic extension to file your taxes, you would still have to pay your taxes by the due date. It's a tough situation. If you can line up a short-term loan from friend or family that might be the best approach for you. It depends how long it will take you to earn the difference, I guess. -pyg |
#3
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Re: Money tied up in Neteller, file delay for paying taxes
Please consult a CPA before taking my advice... but it's not technically "winnings," until you have "reasonable control," of your funds. You do not have this currently. It is interesting because you did at one time have control over them, so I'm not sure if it would be a good excuse if audited.
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#4
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Re: Money tied up in Neteller, file delay for paying taxes
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Please consult a CPA before taking my advice... but it's not technically "winnings," until you have "reasonable control," of your funds. You do not have this currently. It is interesting because you did at one time have control over them, so I'm not sure if it would be a good excuse if audited. [/ QUOTE ] Please consult a CPA before taking my advice... You may also be able to make a case for not only collectability but uncertainity of the actual dollar amount that MAY BE collected if and when the situation is resolved.. |
#5
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Re: Money tied up in Neteller, file delay for paying taxes
I mentioned in another post, that I don't feel at all comfortable paying taxes on my frozen neteller money. At this point its fifty fifty (maybe) that that money is any more real than play money at this point. Certainly it is uncertain that we will ever get to spend it. I am sure that if I pay taxes on it and never see it (a real possibility) I will never get that money back, and have a heck of a time trying. I want the government to come out and give me assurance I will get my money then I will pay taxes on it. I will pay taxes on the money I was lucky enough to get out.
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#6
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Re: Money tied up in Neteller, file delay for paying taxes
This is a question that should only be answered for you by a Tax Professional willing to defend their position.
Remember, you have already demonstrated constructive receipt by 2 actions: 1. You moved the funds off the poker table and into your Poker Account 2. You moved the funds off the Poker Site into Neteller (a financial account) |
#7
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Re: Money tied up in Neteller, file delay for paying taxes
I had a very brief talk about this with a tax professional and relating it 2nd hand, it does come down to what the IRS would consider constructive receipt w/r/t NETELLER.
If not, you can declare a 2007 loss if you don't get it back, but you still have 2006 income. |
#8
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Re: Money tied up in Neteller, file delay for paying taxes
It was my impression that gambling losses cannot be carried over.
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#9
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Re: Money tied up in Neteller, file delay for paying taxes
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It was my impression that gambling losses cannot be carried over. [/ QUOTE ] Its not a gambling loss, if neteller funds are not retrievable! |
#10
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Re: Money tied up in Neteller, file delay for paying taxes
[ QUOTE ]
I have almost all of my poker winnings in neteller from last year, just under $10k (~$9,000). I have not reported this yet and was wondering since it is tied up if I can file for a delay of paying this portion of my taxes and have: "money taken hostage by u.s. government and neteller" as the reason? Anyone else in a similar bind and what do you plan on doing come 'online poker tax d-day' --> April 15th 2007. [/ QUOTE ] As others have said, you would be best advised to seek the counsel of a good CPA and possibly a good Tax Attorney. If in doubt, pay the taxes. You can always request a refund if you overpaid. |
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