A Message from PPA Exec Dir.

[Merkle]

[ QUOTE ]
Quoting from WW T&C’s, “It is the policy of the Site, in compliance with United States Internal Revenue Service regulations, to send an IRS Form 1099 or other appropriate form to any person who wins in excess of $600 (USD) on the Site in any given year. Depending on the jurisdiction in which you reside, the Site may also send you additional similar tax forms. However, you remain solely responsible for paying all federal and other taxes in accordance with the laws that apply in your state, province, and/or country of residence.”

Notice they hold NO taxes, only issue a 1099.

obg

[/ QUOTE ]

Do the 1099's sent represent NET winnings on the site for the year?

And unless the IRS is willing to accept net winnings then NO I will not be satisfied with the way poker winnings are treated. I do believe this issue should be addressed from the beginning and not something treated as an "Oh, by the way..."

[Merkle]

Poker is a recreational game for all levels of our society. Sometimes I think people with higher income levels, or that alreay itemize deductions overlook some of the impacts of current poker income treatment. A lower middle income family that would normally qualify for Earned Income Credit could easily lose that because of an unfairly exaggerated Adjustd Gross Income.

What good does it do to win $4,000 or less but have an AGI that cost you $ 3,000+ in EIC. The way things are now you could lose money playing online poker for a year and then lose $5,000 in EIC on top of that.

Unless you wish to make poker an elitiest game only for the wealthy these issues need to be addressed up front.

[oldbookguy]

Since no taxes are taken and that is not a concern to them, they are reporting cash-outs.

The method used is no different than if you sub-contract yourself to an company. The company simply reports they paid you XXX, it is your responsibility to do the taxes owed, expenses, ect.

Really, no different than now, winnings go on line 21 and losses schedule A. They, nor you and I can 'net' winnings.

obg

[schwza]

PPAdc welcome and thanks for posting. TheEngineer, congrats, it's been a long time coming.

[PPAdc]

All,

Thanks for the feedback. The PPA is excited to be working with TheEngineer; he will be a great asset to our team.

I wanted to address a couple of the issues raised. First, I think it is important that the poker playing community understand that we are and always have worked in their best interest. True, we haven’t lead on every issue every poker player wants us to, but we have never taken a position or lead a fight that didn’t benefit poker players.

Second, the PPA is concerned about the impending regulations, we are following it closely and we are working behind the scenes to minimize their impact on the poker playing public. I think that is enough said on the matter.
Finally, I wanted to share with you a short item that appeared today in Congress Daily PM, a Capitol Hill publication.

Rep. James Sensenbrenner, R-Wis., already a millionaire and heir to the Kimberly-Clark fortune, is on a lucky streak. The lawmaker hit it big in 1997 with a $250,000 jackpot in the District of Columbia lottery. In the spring, he won a $1,000 prize in the Wisconsin lottery and he won another $1,000 in that lottery last week, the Associated Press reported. "I got lucky," Sensenbrenner said. He said he spends about $10 a week on lottery tickets.

The irony of course is that Mr. Sensenbrenner supported the UIGEA. Obviously he thinks it is perfectly OK to spend $10.00 a week playing the Lotto, but a $10.00 Internet poker buy-in is somehow sinful.

It is also interesting that according to Wisconsin state law, illegal gambling is defined as any chance game in which "one stands to win or lose something of value." Apparently all chance games, except lotteries. (Although given the Congressman’s streak there might be more skill to lotteries than we thought!) This is sourced from the following story http://www.jsonline.com/story/index.aspx?id=636263.

Rest assured, he and his staff will be made aware of this inconsistency!

Best,

John Pappas, Executive Director
Poker Players Alliance

[PPAdc]

Any Wiconsin/Milwaukee based 2+2ers who want to respond with a letter to the editor? The Sensenbrenner story was covered in the local paper.

http://www.jsonline.com/story/index.aspx?id=658368

Just an idea.

[MiltonFriedman]

Already sent in a campaign contribution.

[djrion]

John,

Welcome to the boards and thanks for the communication!

Engineer,

Congrats on your promotion [img]/images/graemlins/laugh.gif[/img]! It is well deserved.

ryAn

[BluffTHIS!]

PPAdc,

I have some questions perhaps you can answer. Also I'll ignore for now, other than this comment, the inconsistency between what you previously told the Engineer and what you said in your last post regarding working to minimize the impact of the regs. However I suggest that in the future in this forum, that you don't open up yourself to being labeled untruthful, even if it can't actually be proved, if you want to enjoy credibility and respect here.

So here's my questions:

1) Is the PPA negotiating with iMEGA to join their suit in order to help them cure potential problems of standing (again with my standard note that iMEGA should foot the PPA bill for helping them). And as well for possibly one of the 3 pro player board members to join individually in order to claim actual harm by the effects already encountered of the UIGEA and those to follow later from the regs, in order to help prove ripeness?

2) Are you working on a new paradigmn of fundraising to encourage regular donations from the membership, even though they joined for one life-time fee or for free, in order not to be dependant on the online sites for fundraising and donations?

3) As I have noted earlier in this and other threads, I realize that you work for the board and so aren't in a position to speak to issues of the makeup of same or the goals it has tasked you with working on. However, can you say whether the board is willing for a current board member (Fossilman perhaps?) to come here and address those issues, while you continue to address ones on grassroots political tactics?

[BluffTHIS!]

bump for a response from PPAdc