If you had more then $10k in neteller in 2006 but didn't pay taxes!! - Page 4

G-Diddy20 · #31 07-05-2007, 10:40 AM

i think my dad claimed me as a dependant on his taxes...what should i do about that?

Poker CPA · #32 07-05-2007, 11:11 AM

"Do you really want to spend three years, seven in the case of fraud, sleepless worrying about an audit?"

This is what Al Copone's tax accountant and tax attorney thought too. Seven years, not even close. Try "for the rest of your life". If you file by July 15th add about 25% for interest and penalties; August 15th, 30%; Sept 15th. 35%; and add 1% for each month thereafter. These are estimates but should be fairly close.

Jail time is not a factor, but file the taxes ASAP.

PokeReader · #33 07-05-2007, 11:24 AM

Look, Diddy, please ready my, (and other,) long posts in the FBAR thread. You should really try to consult a tax attorney because one, you have significant FBAR liability. (If you use your FBAR for criminal purposes, and/or the IRS levies a penalty against you for tax evasion, and/or if you violated FBAR in the past, and/or do not cooperate with the investigation, (any of the above), you do not just have a late filing problem. You have a minimum of a willing FBAR violation, meaning 100K, or 50% of the account, whichever is more, plus your tax penalty, and as the IRS considers internet poker another criminal tax evasion scheme, you might have more liability, depending on how they choose to handle it. I would be very cautious in your situation.

If you consult a tax accountant, they are legally required to tell you to immediately file. However, a tax attorney can tell you what is in your best interest, (or likely to be), and will be able to maintain a confidential relationship.

There is alot of information posted in the other FBAR thread. It is the best place to go. But as a general thing, if you have paid all your taxes on time, have all the proper record, (you must maintain FBAR records for 5 years), and marked Schedule B, and are filing late, or did not mark Schedule B, the IRS would be entitled to fine you, no one is sure if they will. There is no official IRS guidance on this, see article in previous post. If you owe taxes and are late, you have a much more substantial problem, you are very vunerable, as Title 26 protections do not apply to FBAR's. There is also a tax attorney's article about this situation, and the in previous post. If you have not filed be sure to do your homework. There is an arguement about Constructive Receipt and Neteller, this will only apply if you have not paid taxes. You should be aware of it, and know what decision your tax preparer has regarding this issue.

iceman5 · #34 07-05-2007, 12:51 PM

My brother in law owes the IRS over $100K from non payment / underpayment of taxes over the past several years. Hes NOT going to jail. They are working on payment options.

Whoever in this thread said or thinks that OP has ANY chance of going to jail over this is a moron.

That being said,
OP,

Pay your taxes.

Russ Fox · #35 07-05-2007, 01:20 PM

A couple of weeks ago I listened to an IRS teleconference on FBAR/foreign bank account reporting. Note that none of what I'm about to write is specific tax advice; you should, if you're impacted by this, consult your own professional tax adviser as everyone's situation is different.

The IRS was asked what would happen if someone hasn't reported a prior year and needs to. Would they receive a penalty/fine? In response, the IRS representatives stated that the goal is not to fine non-willful violators who come into voluntary compliance with FBAR. [emphasis added] The IRS stated that anyone filing late (or filing a prior year) should attach a letter to their TD F 90-22.1 explaining why their filing was late (e.g. I didn't know about the requirement). Note that you may also need to amend your tax return to include Schedule B.

So what does this mean? If you had $12,000 at Neteller and have just now found out about the filing requirement, you're probably safe in filing the TD F 90-22.1 late, attaching an explanation, and amending your tax return to show the foreign bank account on Schedule B. (Note that the TD F 90-22.1 is mailed to Detroit, and an amended tax return will be mailed to some other address.)

However, if you had a very large balance at Neteller, and you knew about the FBAR requirements and just decided "I'll ignore this" (e.g. you are a willful violator), you may wish to consult with an attorney.

Finally, as to the chance of an audit by filing this form, no one knows for this year. Years ago, it was close to 100% (by filing TD F 90-22.1). However, because so many are filing this form, the percentage has lowered significantly in the past couple of years (at least as far as I and other professionals I've talked to about this can tell). Given that even more individuals are going to file this form for 2006, it is impossible for the IRS to audit 100% of new filers--they just don't have the manpower.

Finally, these are not the kind of audits that will occur six months after you file the return--they typically happen 18 to 30 months after you file your return.

-- Russ Fox (EA)

G-Diddy20 · #36 07-05-2007, 03:57 PM

I have a meeting Tuesday with our family accountant and am going to bring my neteller records printed out and inform him of the money I won and get everything filed in and pay any penalties and get this damn thing off my chest. Thanks for all the help and advice.

G

jasonfish11 · #37 07-05-2007, 05:03 PM

[ QUOTE ]
I have a meeting Tuesday with our family accountant and am going to bring my neteller records printed out and inform him of the money I won and get everything filed in and pay any penalties and get this damn thing off my chest. Thanks for all the help and advice.

[/ QUOTE ]

Good choice. I was going to point you in the direction of a tax forum just like this but made for tax questions not poker. Paying the money and penalties are the way to go.

Here is the tax forum incase you want to ask some people there. I can almost gaurantee they will tell you to pay. But they could give you a VERY good estimate on penalties and actual payment amount.
http://moneycentral.msn.com/communit...oard=TaxCorner

Chillum · #38 07-05-2007, 07:52 PM

You only have to file if you had 10k at ONE TIME in neteller correct?

jrbick · #39 07-05-2007, 08:38 PM

[ QUOTE ]
You only have to file if you had 10k at ONE TIME in neteller correct?

[/ QUOTE ]

incorrect. aggregate total is what they are looking for. in other words, the total of all deposits.

FullyTilted · #40 07-05-2007, 08:56 PM

[ QUOTE ]
[ QUOTE ]
You only have to file if you had 10k at ONE TIME in neteller correct?

[/ QUOTE ]

incorrect. aggregate total is what they are looking for. in other words, the total of all deposits.

[/ QUOTE ]

Are you absolutely certain of this? This does not match my (limited) understanding, which is that the form must be submitted if the aggregate balances exceeded $10k at any time in 2006.