Legal workaround/possible $$ laundering for US players?

[BigAlK]

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Morality? Yea I should be perfectly willing to hand over my hard earned money and give it to guys like Bill Frist so he can tell me what to do. You guys slay me

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And you wonder why poker players have a bad image.

[tvta]

is it not the aggressive deductions that flag an audit??? im no expert on taxes, but if the goal is to keep money from uncle sam....would simply not reporting anything under $5k or $10k (whatever the limit is on getting flagged) be more successful than putting yourself in a position to receive an audit.

[BigAlK]

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is it not the aggressive deductions that flag an audit??? im no expert on taxes, but if the goal is to keep money from uncle sam....would simply not reporting anything under $5k or $10k (whatever the limit is on getting flagged) be more successful than putting yourself in a position to receive an audit.

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I should probably throw out a disclaimer that I'm not a tax expert either and all of this is my opinion although based on hearing lots of tax stories over many years as well as what I've been told by professionals. My statement was based more on risk/reward, not avoiding an audit. If avoiding an audit that is your primary goal take the standard deduction and report all income. My goal is to have my taxes be what I owe, but not a penney more.

I advised going "up to the line" on deductions. Where that line is may sometimes be tough to determine. If you're audited whether you went over the line in close decisions may depend on factors you can't anticipate (mood of the auditor, quality of your explanation, etc). But if the auditor disallows a deduction the repercussions will be relatively minor. (This assumes that it appears you took the deduction in good faith and it was a close call. In other words you thought you went up to the line and the auditor thought you just slipped over it.)

The odds of the IRS finding unreported income might be low, but over the last 10-20 years they've been putting a lot of resources into tools to find it. The odds might not be as low as you think. If you don't have a bank account of any kind, pay for everything in cash, have no investments, and somehow cash your checks from poker sites without raising any flags you might be safe. If your poker income is minimal relative to your other income you might be safe. If your lifestyle is well below your actual means (in line with what the IRS thinks you make rather than what you really do) then you might be safe. Unreported income if it can be proven has no defense.

[driller]

Ok. You pay taxes on your winnings, not on your withdrawals.

Don't know about FT, but the checks from PokerStars are from a US account and look like an ordinary check from a U.S. business. For a bank to check out every check that looked like this would swamp them completely. In any case, given the lack of written regulations, I doubt that it is illegal for them to credit the amount of the check to your account.

[PokeReader]

Look, what you are theoretically discussing, would run into FBAR, money laundering, tax evasion problems, and probably some I haven't thought of yet. I suggest you just get your own account and suffer though the increased inconviences of cashing. If you get caught under your scenario, they would be able to throw the book at you. It is much safer that way.

[KEW]

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Morality? Yea I should be perfectly willing to hand over my hard earned money and give it to guys like Bill Frist so he can tell me what to do. You guys slay me

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Every working man that collects a pay check or busines owners does...Why should "we" as poker players be any different..I am proud to pay my taxes...

[oldbookguy]

well put! perhaps we can incorp. this position into one of Engineer's Action Threads!

We are poker players and tax paying voting Americans.

obg

[NeBlis]

[ QUOTE ]
[ QUOTE ]
Morality? Yea I should be perfectly willing to hand over my hard earned money and give it to guys like Bill Frist so he can tell me what to do. You guys slay me

[/ QUOTE ]

Every working man that collects a pay check or busines owners does...Why should "we" as poker players be any different..I am proud to pay my taxes...

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I really hope you are leveling here.

otherwise go back to games you understand

[Kurn, son of Mogh]

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Morality? Yea I should be perfectly willing to hand over my hard earned money and give it to guys like Bill Frist and Ted Kennedy so they can tell me what to do. You guys slay me

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FYP. Handing over your hard-earned money to either side of the aisle's agenda is painful. We'll make a libertarian out of you yet. [img]/images/graemlins/cool.gif[/img]

[Kurn, son of Mogh]

Even if you ignore the morality of cheating on your taxes

ROFLMAO. The United States was born from a tax revolt. Google "HMS Gaspee" to learn how freedom loving people treat the taxman.

"I'll tell you how it's gonna be
One part for you, nineteen for me, I'm the taxman"

-John Lennon/Paul McCartney