Pay Your Taxes

[ChexNFX]

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the IRS will catch up with most people who break the law.

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LOL -- give me a break. The IRS catches up with a tiny percentage of people who cheat on their taxes where, as here, nobody is filing W-2s or 1099s.

There are arguments for paying taxes on poker winnings, but this is not one of them.

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If you are very good with withdrawing small, odd amounts, it may just look legit. Big withdrawls of more than a few thousand consistently, will be flagged. I read somewhere that $3,000 EFT is when the most banks flag big brother.

[Suigin406]

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the IRS will catch up with most people who break the law.

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LOL -- give me a break. The IRS catches up with a tiny percentage of people who cheat on their taxes where, as here, nobody is filing W-2s or 1099s.

There are arguments for paying taxes on poker winnings, but this is not one of them.

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If you are very good with withdrawing small, odd amounts, it may just look legit. Big withdrawls of more than a few thousand consistently, will be flagged. I read somewhere that $3,000 EFT is when the most banks flag big brother.

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i thought most banks filled out a SAR was filled out for 1K?? i could be wrong here, someone correct me if i am...

[amulet]

this is changing quickly. over time they will now catch up with most. and they will subpoena a lot of the poker records in the next few years. they can and will go back 7 years.

[bumpking]

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this is changing quickly. over time they will now catch up with most. and they will subpoena a lot of the poker records in the next few years. they can and will go back 7 years.

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That still don't mean a thing. If they can prove that you won $100k last year playing online poker, then you can say you lost $80k in a real B&M cardroom or Vegas. No way they can track that!

[RoundGuy]

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That still don't mean a thing. If they can prove that you won $100k last year playing online poker, then you can say you lost $80k in a real B&M cardroom or Vegas. No way they can track that!

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And you're keeping the 80k...where? Under your mattress?

[aces_full]

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this is changing quickly. over time they will now catch up with most. and they will subpoena a lot of the poker records in the next few years. they can and will go back 7 years.

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LOL subpoena what poker records??? You really think offshore sites like Party,Stars,etc would cooperate. You have got to be kidding me. Even if they did, do you honestly think the IRS is going to go through every single record of millions of US online gamblers to see who owes money. No freakin way.

The only way people are likely to be caught not reporting poker winnings is if they are audited. There is a small percentage of random audits, but for most, unless your tax return raises some red flags, it just gets a quick check and is processed.

I do agree with you on one thing though: If you make all or a significant portion of your salary through poker winnings, then you would be an idiot not to report it. I really don't think the average small stakes recreational player with a full time job that might make a few thousand extra a year at the poker table has much to worry about.

[Zetack]

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this is changing quickly. over time they will now catch up with most. and they will subpoena a lot of the poker records in the next few years. they can and will go back 7 years.

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That still don't mean a thing. If they can prove that you won $100k last year playing online poker, then you can say you lost $80k in a real B&M cardroom or Vegas. No way they can track that!

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Unfortunately, the IRS requires you to report the $100K as income, you have to claim the 80k as itemized deductions. So if the IRS proves you had 100k in online winning you didn't declare, you're screwed.

Also, by $100K in online winnings I asuume you mean net. If you won a million in your various winning sessions and lost 900k in your losing sessions, you are required to report the million as income.

Finally, the "hey I lost 80k at a casino and you can't prove I didn't" isn't going to cut it, you need more documentary evidence of your losses.

So, basically, under your strategy you are screwed.

Have a nice day.


--Zetack

[amulet]

it doesn't work that way. good luck if you think that. you must have detailed records to substantiate your claim.

[CaptVimes]

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this is changing quickly. over time they will now catch up with most. and they will subpoena a lot of the poker records in the next few years. they can and will go back 7 years.

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That still don't mean a thing. If they can prove that you won $100k last year playing online poker, then you can say you lost $80k in a real B&M cardroom or Vegas. No way they can track that!

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Speaking as a CPA, if you claim $80,000 in gambling losses the IRS may just want to see you someday. That is why you need to keep records. If you have no records and they audit you, you can kiss all those deductions goodbye. Which then means you pay not only the tax due, but also penalties and interest. The IRS doesn't have to prove anything, you do.

I would think the B&M's keep track of who buys & Redeems chips.

You earned the money, pay the taxes.

[nws103]

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i like all the benefits from driving on good roads to the protections offered under our constitutional.

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phew...for a second i thought you were talking about the united states of america. that gave it away though. what sort of magical fairy land are you referring to?