Taxes question - what is the definition of a session?

[Niediam]

Mr. Fox actually says a little differently than you are for both B&M and online play (see link). But I do agree that it's possible that the online '24 hours = session' method users will not pass IRS scrutiny. That method just doesn't seem to go along with what the word 'session' logically mean but we will have to wait and see if the IRS ultimately cares or not...

http://www.gambling-law-us.com/Artic...ng-Session.htm

[RED_RAIN]

This becomes a pain/problem when we talk about sites that aren't PT friendly.

[theRabbit]

A few miscellaneous thoughts that I will share with the forum-

As far as I can tell - the laws regarding reporting poker income are ambiguous. If not reporting as a professional, you are required to report wins and losses separately. (I am not sure why more people don't file as a professional if they really are, but that's another subject.)

Look at the IRS document that describes this.

http://www.irs.gov/pub/irs-pdf/p529.pdf

"Diary of winnings and losses. You must keep an accurate diary or similar record of your losses and winnings.

Your diary should contain at least the following information.

1. The date and type of your specific wager or wagering activity
2. The name and address or location of the gambling establishment.
3. The names of other persons present with you at the gambling establishment
4. The amount(s) you won or lost."

Theres more stuff that follows.

They later go on to say -

"These record keeping suggestions are intended as general guidelines to help you establish your winnings and losses. They are not all-inclusive. Your tax liability depends on your particular facts and circumstances."

I do not know if the IRS code (IRC) is clearer. I think the question would be is why these laws where put in place.

I am not a CPA or otherwise qualified to give advise in this area or about anything regarding taxes, but from my experiences with the IRS

If I understand the law, the IRS has 3 years to audit your return. (6 years if the taxpayer omits additional gross income in excess of 25% of the amount of gross income stated in the tax return filed with the IRS.)

After that time you are not subject to audit. (There may be some exceptions though.)

The one thing that will most upset the IRS is if they find you are hiding income or filing a false return. At a minimum you will can get a large penalty and at worst in addition, possible probation or jail time. (It is situation and people dependent.)


If you make a good faith effort to properly report your taxes and are found deficient you will have to pay the deficiency but you can, depending on the reasons, try to negotiate or litigate away all or some of the penalties (but not interest). If you are audited and a deficiency is found there is a multi step process for contesting this which you can continue all the up to Tax Court and possible appeals. (You may have to pay the money while contesting. If you hire a tax lawyer can get very expensive fast. I think that's why many just pay the money rather then contest, even when they are right.)

If you do owe money, generally the IRS will allow you to work out a payment plan if you can show you do not have the money or assets. (It is situation and people dependent.)

It's not fun dealing the IRS. (I know from experience.)

I am not suggesting you do not pay all your taxes. However you are entitled to pay as little tax as is legal. This can make for difficult decisions.

Hope this helps someone.

<u> Please remember NONE of this is "professional" advice.</u>.

[Number4]

Here is a good link- http://foolandhismoney.blogspot.com/...ath-taxes.html

The 24 hour thing appears to be wrong. Personally, I define a session as each time I sit down and play. If I get up and go get lunch or take a nap and come back, that is a new session

Granted, this is probably all meaningless as the IRS is most likely not going to be hunting small-time poker players down, but better safe than sorry.