My new CPA says I should file as a corporation???

[Steve Giufre]

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You can do it, what happens if they decide to audit you is a different matter. Im not aware of a court case where an online pro who used a corporation in an OFC without income taxes has been audited. Im not sure it would fly in a particular state. Esepcially if you have one where gambling as a business is defined as a crime.

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I'm not sure either, but its defintely something that more than a few CPA's are recomending these days. I've talked with two pretty good ones in CA, and both have suggested that I do this, and have said it has worked out well for other clients. I can believe it could get a little tricky if you were audited, although I've been told otherwise.

Looking past this and s-corp seems to be the best way to go. You accountant is right, you dont have to pay self employment tax, and you can write off all your gambling related expenses. One more thing to consider is whether or not you may need to borrow some money at some point down the road for a house or whatever else. If thats the case you are probably better off filing under some vague occupation and paying on your winnings rather than putting professional gambler on that line. Banks arnt crazy about lending money to gamblers.