The problems with cashouts and tax liability

[Unabridged]

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Who’s to say the poker site will actually pay you? If such places are funding terrorist activities they surely couldn't be trusted enough to pay out, correct?

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exactly, in the governments eyes this is no different than drug dealing. why should a few numbers on a computer screen from a criminal equal recieved money.

[sports_quant99]

Guys - i'm pretty well versed in gambling tax laws... this is a tricky area.

The counter argument to the "constructive receipt" doctrine might be that there is a "substantial risk of forfeiture". But then the counter argument to that is that before 1/14/07, there was no "substantial risk of forfeiture".

So what if you won $10k in Dec 2006, and Neteller now stiffs you? My hunch is that technically in the eyes of the IRS, you would owe tax on the $10k in 2006, then have to claim a bad debt or theft deduction in 2007.

On the other hand, what if you won $10k yesterday, and the book only allows a transfer to Neteller. Then Neteller stiffs you. In this scenario, i do not believe you would owe tax.

[r0eKY]

gross, all of it

this entire place is a mess