Filing taxes as a "losing" professional gambler

[yahboohoo]

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The SL is the Statute of Limitmations I refer to earlier. Required reading for business people. Don't think in terms of filing a return every April 15th, its more like "another one bites the dust". Tomorrow, 2003 bites the dust, Yippee.

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The statute of limitations you're referencing only applies to three of the more minor tax laws, and assumes any offense was committed no later than April 15, 2004. Someone could have filed for an extension or a late return.

The following is from the US Department of Justice’s Criminal Tax Manual under “Section 7: Statute of Limitations”:

No person shall be prosecuted, tried, or punished for any of the various offenses arising under the internal revenue laws unless the indictment is found or the information instituted within [3 to 6] years next after the commission of the offense...

The statute of limitations for the most popular offenses:

Tax Evasion - 6 years
Failure to Pay - 6 years
Failure to File a Return - 6 years
Filing a False Tax Return - 6 years
Failure to Keep Records - 3 years
Failure to Supply Information - 3 years

[longtime1stime]

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Have you had previous years where you filed a return as a winning professional gambler? If not, the IRS might make life hard on you.

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This will be my first year filing a return as a professional gambler(or other subtle name for profession). Why do you think the IRS will make life hard on me?

[Poker CPA]

I think you're wrong on the "tax evasion" and "Failure to File a Return". But to tired to care. Evasion never closes and "not filing" never opens. Good luck

[emptyshell]

For some reason, these people have a lot of anxiety around taxes. I hate sending the check, but considering that I'm filing completely honestly, I don't feel scared (maybe I should be?) Hiring a CPA still seems like a worthless expense in your case, considering the negative net income.

Just use TurboTax like millions of the rest of us. It's fine. I'm not sure what's the minimum version you can get with a Schedule C. I used "Deluxe Maximizer" (a step up from Basic) that had it. Piece of cake.

[Russ Fox]

Warning about statute of limitations: Many states have statutes of limitations that are longer than the federal statute of limitations. California's is four years (generally), for example.

-- Russ Fox

[yahboohoo]

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I think you're wrong on the "tax evasion" and "Failure to File a Return". But to tired to care. Evasion never closes and "not filing" never opens. Good luck

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For someone whose name is Poker CPA, I'd expect you know this. Scroll down and read "7.01 Limitations Periods for Common Tax Offenses."

I'm not the source. The DOJ is.

[LotteryOrPoker]

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I think you're wrong on the "tax evasion" and "Failure to File a Return". But to tired to care. Evasion never closes and "not filing" never opens. Good luck

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Failure to File a Return 26 U.S.C. § 7203 6 years 26 U.S.C. § 6531


Tax Evasion 26 U.S.C. § 7201 6 years 26 U.S.C. § 6531

[LotteryOrPoker]

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I think you're wrong on the "tax evasion" and "Failure to File a Return". But to tired to care. Evasion never closes and "not filing" never opens. Good luck

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For someone whose name is Poker CPA, I'd expect you know this. Scroll down and read "7.01 Limitations Periods for Common Tax Offenses."

I'm not the source. The DOJ is.

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You might be right about this, but you are usually wrong. You were well known as one of the most routinely incorrect and annoying people at pokah! Don't come over here getting too excited because you correctly cut and paste once.

[Poker CPA]

Read this carefully yahboohoo, keeping in mind the IRS can extend the statute any time. They need consent from the taxpayer, but the taxpayer rarely puts up a fight, because the IRS can issue a 90 day letter denying any and all transactions on the return. "Complete" and "completion" are key words. The statute starts when the IRS has knowledge of the tax crime. So its 6 years from that date, not the filing of the return, and they can extend any time they want. So the effect in tax crime cases, the statute never opens for the taxpayer, thus he will always be at risk, no matter when he files. This part of the IRS code protects the IRS, not the taxpayer. This is what got Al Capone and is the auditors worst nightmare, to have criminal charges and they accidently allow the 6 years to lapse. I hope you agree.

Generally, the statute of limitations begins to run when an offense is
completed. Toussie v. United States, 397 U.S. 112, 115 (1970).
Prosecutors should be aware that not all tax offenses are completed upon the
filing of a tax return. For example, in a tax evasion case where the
affirmative act of evasion is a subsequent false statement to IRS agents,
the crime is completed at the time the false statement is made, not when the
false return is filed. United States v. Goodyear, 649 F.2d 226 (4th
Cir. 1981). Consequently, careful examination of the various elements is
required to determine when a specific tax offense is completed.

[Poker CPA]

So the SL protects both the honest taxpayer and the IRS. I assume OP that you are honest, thus my advice to file. And like I said, on the 18th, 2003 is history. I hope you change your opinion on my profession, we can be quite helpful on a varity of issues.

The best of Luck