The official NETELLER thread. (First 40 days.) #1 of 2.

[Mendacious]

It is probably a matter of public record, and if not, someone SHOULD be able to find out what records/information has been requested by the USAO from Neteller. This would be very revealing about what the USAO is after. For instance, I have my doubts that they have requested customer records in mass. I suspect the records are more of the nature of Neteller's business records as opposed to the specifics of each account. I am not sure a court would issue as subpoena for those types of records automatically, especially since they seem to have very little nexus to the pending case against the Neteller founders.

I would like to think that Neteller would object to giving customer records in mass without a fight. These types of records are completely different than "turning over the books". Neteller probably has to do some legal due dillegence before turning over private records like that.

[thing85]

[ QUOTE ]
I just wonder if WHEN you get your money, the 1099 is going to come with it. You can then prove with a win/loss record (like at a B&M casino) you didn't make a profit. The assumption is you did. I work at a Casino. You can cash out as much as you want and not pay taxes from table games. BUT at 10,000 a CTR (cash transaction report) is sent to the IRS. Not showing you made anything, but rather showing you took 10,000 in cash and now the gov has a record. I'm sure an audit is on the way if nothing is claimed as a win/loss.

[/ QUOTE ]

No, this is again mostly false information.

How the [censored] is the IRS going to send everyone a 1099? Do you think they can accurately measure the unreported income earned by every individual through their NETeller accounts? Theoretically, yes. Practically, no.

I'm not arguing that the IRS is incapable of auditing maybe 5% of US NETeller customers (and even this % might be generous). The IRS simply does not have the manpower to complete the audits necessary to create both 1099 statements and further research to compare NETeller's information with previously reported tax information.

Also, money transferred through NETeller (in or out) does not constitute income. If you transfer $1,000 on Stars to your brother as a gift, this is not 1099 income (or necessarily any income at all - see gift tax rules for further information). Also, once money leaves NETeller onto a gambling site, the IRS cannot tell your gambling winnings/losses. In an audit, they can ask you to provide this information (and you have to), but they are not going to try and track down this information for thousands and thousands of people.

It's just not realistic.

[gone.flying]

[ QUOTE ]
It is probably a matter of public record, and if not, someone SHOULD be able to find out what records/information has been requested by the USAO from Neteller. This would be very revealing about what the USAO is after. For instance, I have my doubts that they have requested customer records in mass. I suspect the records are more of the nature of Neteller's business records as opposed to the specifics of each account. I am not sure a court would issue as subpoena for those types of records automatically, especially since they seem to have very little nexus to the pending case against the Neteller founders.

I would like to think that Neteller would object to giving customer records in mass without a fight. These types of records are completely different than "turning over the books". Neteller probably has to do some legal due dillegence before turning over private records like that.

[/ QUOTE ]

I'd think that NT customers records are far from the DoJ' interest at the moment - they will likely be asking for details of transfers between JSL and Neteller and other corporate records

[soflat]

I don't think they are only requesting general accounting info. It doesn't seem like the DOJ would have much of a case if they don't request records on US customers. Does it?

Afterall, the charges against the two founders surrounds NT's involvement in laundering money for sportsbook bets originating in the US. And they have seized funds of US customers. Thus, won't they need the records of individual Americans accounts?

Also, they (IRS, USAO) might not need to go thru millions of records by themselves, because NT can cooperate and do the work for them by pre-filtering the data to help the gov't find what it is looking for (such as individuals who had balances over $10k, or whose accounts showed a large profit, etc).

[KARLC]

http://www.notedpokerauthority.com/n...olls-over.html

this should be fun

[betgo]

I grew up in Washington and one hand often doesn't know what the other is doing with the government. I wouldn't assume that the IRS will use the information handed over.

Plus if you are paying your taxes, or atleast paying some taxes, it shouldn't be that much of a problem. Most pros and winning players have other poker income than what went through Neteller.

[KurtSF]

[ QUOTE ]
This is outrageous!

Instead of standing up and saying, "We are a legal and licensed company
based in the UK/Isle of Man. If you want any of our records please take
it to one of our courts where we will fight you vigorously and only if we
lose and have exhausted our appeals will we turn over our records," they
rush over to the US Attorney's office to say "How can we help?"

[/ QUOTE ]

Indeed.

[disjunction]

[ QUOTE ]
http://www.notedpokerauthority.com/n...olls-over.html

this should be fun

[/ QUOTE ]

It actually sounds like good news for anyone that has funds stuck in Neteller and pays their taxes.

[brink]

It's not really good news at all, even if you pay your taxes.

The main problem is that if they audit you and start poking around your finances, it will cost big time dollars to straighten out the mess. Not to mention time and aggravation. This isn't something most people can handle for themselves.

They dig thru your bank records and ask what every single check and transaction was.

The end result, either way, regardless if you have done no wrong, is more money out of your pocket, and generally, a significant amount. PLus the time. It can drag on for years.

[BigBiceps]

Call the USAO?

http://www.usdoj.gov/usao/nys/