Who Reports Their Online Winnings to the IRS

[andywend]

1. Deposit $1,000 into a poker site at start of 2006.

2. Play great poker all year and turn the $1,000 into $10,000 by the end of 2006.

3. Request $10,000 cashout from poker site into Neteller.

4. Request $10,000 check from Neteller.

5. Neteller processes your withdrawal request.

6. Feds seize your $10,000 and provide no timeframe on IF or WHEN you MIGHT get YOUR money back.

Recap:

You made a $9,000 profit playing poker.

Instead of the $9,000 profit, you are now down $1,000 and scrambling to find a way to come up with the $3,000-$4,000 to pay taxes on winnings you NEVER received to the same entity who seized your money in the first place.

Is there anything wrong with this picture?

[TimWillTell]

[ QUOTE ]
1. Deposit $1,000 into a poker site at start of 2006.

2. Play great poker all year and turn the $1,000 into $10,000 by the end of 2006.

3. Request $10,000 cashout from poker site into Neteller.

4. Request $10,000 check from Neteller.

5. Neteller processes your withdrawal request.

6. Feds seize your $10,000 and provide no timeframe on IF or WHEN you MIGHT get YOUR money back.

Recap:

You made a $9,000 profit playing poker.

Instead of the $9,000 profit, you are now down $1,000 and scrambling to find a way to come up with the $3,000-$4,000 to pay taxes on winnings you NEVER received to the same entity who seized your money in the first place.

Is there anything wrong with this picture?



[/ QUOTE ]


Wow, I'm screwed.
Two years ago I won a prize of 10 million dollars. I never payed taxes on that prize because that gambling-site never paid me the prize.
So now it appears I have to pay taxes on that 10 million; haha!
Double cheers!