irs access casino player points?

F0rtysxity · #1 11-06-2006, 01:42 PM

Pretty straight forward. I have a friend who is considering keeping his poker winnings from the irs? I've advised him against it, but whatever. Does anyone know if the IRS checks player points to see if you've been spending time in a casino if they do an audit or to determine if an audit is worth-while? Thanks...

cardcounter0 · #2 11-06-2006, 01:58 PM

A casino is considered a financial institution and the IRS will be given free access to records just like a bank.

usaftrevor · #3 11-06-2006, 02:03 PM

if you make $65K / year on paper, but you've got a $2400 / mo mortgage and paid over $53K Cash for two recently purchased vehicles... the IRS is gonna have questions.

otter · #4 11-06-2006, 02:08 PM

If they want to perform an audit the casino will comply. If then scan his card every time he plays then they'll know how long he's spent there.

benfranklin · #5 11-06-2006, 02:14 PM

[ QUOTE ]
If they want to perform an audit the casino will comply. If then scan his card every time he plays then they'll know how long he's spent there.

[/ QUOTE ]

But those points are based on time at the table, not how much you win or lose. The casino does not keep records of that unless you cash enough to require filling out an IRS withholding form.

The IRS can infer things from your time at the table, but they can't prove it. (Not that they necessarily have to. [img]/images/graemlins/tongue.gif[/img])

Rottersod · #6 11-06-2006, 02:38 PM

[ QUOTE ]
[ QUOTE ]
If they want to perform an audit the casino will comply. If then scan his card every time he plays then they'll know how long he's spent there.

[/ QUOTE ]

But those points are based on time at the table, not how much you win or lose. The casino does not keep records of that unless you cash enough to require filling out an IRS withholding form.

The IRS can infer things from your time at the table, but they can't prove it. (Not that they necessarily have to. [img]/images/graemlins/tongue.gif[/img])

[/ QUOTE ]

With the increasing encroachment of ePoker tables the IRS will be able to tell exactly what your winnings are at poker. I've said this before and I'll say it again: This will be bad news.

pig4bill · #7 11-06-2006, 03:57 PM

Meh, if I wanted to cheat on taxes, and could only play on etables, I just wouldn't use a players card.

fishyak · #8 11-06-2006, 05:30 PM

Run of the mill IRS auditors aren't all that bright and I would NOT expect them to be savvy about gambling issues. The real issue would be is there something to TRIGGER an audit. If your friend is issued a 1099-G reporting gambling income then that big computer in the sky is going to match it to his return and if it isn't reported, uh oh.

But players club points alone do NOT make you a winner. Gambling winnings can only be offset by gambling losses and gambling related expenses. So keep good notes of all sessions, particularly losing sessions.

In the case of one guy who liked the ponies and hit it big, the court did not like the fact that his evidence of losing was losing tickets with footprints on them!

And, as other poster stated, if your lifestyle is out of whack with your stated income they really start digging. I went through an audit once where an IRS agent lived in my office for two days going through every financial account I had. When bean counters find big gaps without explanation, you are in trouble.

Get advice from a real accountant and if the amount will cause him to get a 1099-G (I've got one coming this year from a 4 figure JP) it is WAY too easy to get caught.

So get advice NOW and DOCUMENT your losses in a way that is acceptable to the IRS and then you should be OK.

If your buddy isn't getting a 1099-G, if he income is real low, one of the reasons the IRS chooses to audit you is a sudden DROP in income. They want an explanation other than the possibility that you are hiding it from them.

F0rtysxity · #9 11-06-2006, 07:21 PM

thanks for the thoughtful responses [img]/images/graemlins/cool.gif[/img]

Rottersod · #10 11-07-2006, 12:12 AM

[ QUOTE ]
Meh, if I wanted to cheat on taxes, and could only play on etables, I just wouldn't use a players card.

[/ QUOTE ]

At HP you have to use a players card. My guess is that this will be the same at all other casino's since this is a way for the casino's to track their customers.