foreign account reporting due today - question

[Poker CPA]

I agree with you "driller"

[FullyTilted]

Thanks for all of the info in this thread.

Unfortuantely, I'd forgotten to mail my 90-22.1 until today, so it won't get postmarked until tomorrow. Everything else is clean - everything else reported, all taxes paid, Schedule B box checked, etc. I included a brief explanation (forgot to put it in the mail).

Given that it's only a couple of days late, I would hope that they would waive any penalties. Obviously nobody here can say for sure what will happen, but any thoughts/speculations on likely outcomes?

[Statutory]

I wasnt aware of FBAR or that poker sites may be regrded as foreign bank accounts.

I have had more than 10K in numerous poker accounts. I have reported every penny I earned, even money I have yet to cash out. I have no money stuck in Neteller.

Should I be worried, and whats your guys' advice on how to proceed.

Thanks

[depokerstar]

[ QUOTE ]
Given that it's only a couple of days late, I would hope that they would waive any penalties. Obviously nobody here can say for sure what will happen, but any thoughts/speculations on likely outcomes?

[/ QUOTE ]

I actually spoke with my CPA about this yesterday. She said she always files the FBAR with the tax extension up through mid-October and has never seen anything come from this. Not that she's doing this correctly, just passing on what she says. It seems very very few CPAs know anything about the FBAR as related to poker or internet funding sites.

[Statutory]

[ QUOTE ]
I wasnt aware of FBAR or that poker sites may be regrded as foreign bank accounts.

I have had more than 10K in numerous poker accounts. I have reported every penny I earned, even money I have yet to cash out. I have no money stuck in Neteller.

Should I be worried, and whats your guys' advice on how to proceed.

Thanks

[/ QUOTE ]

[depokerstar]

[ QUOTE ]
[ QUOTE ]
I wasnt aware of FBAR or that poker sites may be regrded as foreign bank accounts.

I have had more than 10K in numerous poker accounts. I have reported every penny I earned, even money I have yet to cash out. I have no money stuck in Neteller.

Should I be worried, and whats your guys' advice on how to proceed.

Thanks

[/ QUOTE ]

[/ QUOTE ]

I dont think anyone really knows about whether poker/casino sites would pass the test to be considered a foreighn bank account.

IMO, No, you should not be worried. I would not be if I were in your shoes. Failing to report taxes is a different story than failing to file the FBAR paperwork for poker accounts. One is black and white and the other is not really even a grey area.

[PokeReader]

I wouldn't worry about the internet site accounts. I was just making the point that the regulations for Title 31 financial institutions are so broad, that they could incompass anything that acts in any way as a bank, and sites do have some banking-type functions. However, the IRS has not given any specific guidance that they are extending FBAR to the site accounts at this time, but have made it quite clear that they do include all e-wallet accounts. As I said, the other problem I could foresee a player having with the IRS on FBAR's is if they made frequent peer-to-peer transfers. You might get lucky on the IRS personnel you received for your audit, but if audited, a pattern of transfers is clearly setting you up to need to file as a financial institution under FBAR. So players may wish to be cautious here and consult professional advice on this if they have done many of these transfers, or have other problems in addition to this like owing back taxes. Players need to be cautious about FBAR filings however, because for many players the mandatory penalties they could face for a willing violation if the IRS decides to classify them as such is very severe now. We cannot know until some players are audited, and classified how the IRS will treat this, but the four part test for leniency, (see previous post), is something that the IRS could use to fail all internet poker players if it chose. If they do the penalty will be the greater of 100K or 50% of your account at its' maximum. That is just the civil FBAR penalties. So you want to be sure you are fully compliant, and most of all, not using this account to evade taxes. If you have made a gamble on not paying taxes in the past, seek out a good professional tax attorney.

[autobet]

[ QUOTE ]
I contacted the IRS/Treasury Department Foreign bank directly and confirmed with them that e-wallets such as Neteller are reportable foreign accounts for U.S. foreign bank account reporting (due July 2, 2007.)

While I was at it I asked about monies at online gambling sites such as PartyPoker. This was their reply:

"As for a response on the Party Poker account, it may be harder to determine if it is reportable. If it is just a transfer service account it is not considered reportable."

It is my belief now that:

Most likely, most of monies are held at PartyPoker, PokerStars, etc. not reportable. While all non-US online e-wallets are reportable.

FYI

Chip CPA

[/ QUOTE ]

I contacted the IRS today by phone and the representative said poker accounts were reportable on form 90-22.1 going back five years.