Poker Players Are Next......IRS Wins Court Case For Internet Records

Nalapoint1 · #1 04-15-2006, 05:19 PM

For all you guys looking to avoid taxes and paper trails. The IRS just won in federal court vs PayPal, one of the largest internet transaction firms. They were ordered to turn over all payment histories of all americans conducting business using PayPal. A lot of you young guys are too stupid to see the writing on the wall but remember that with the IRS it is not a matter of if, but when ypu get caught.
My father had a carpet installer that worked for him 20 years ago. 10 years ago the IRS seized everything he owned. $350,000 house, $60,000 boat, vacation home on lake, cars, tools, trucks, bank accounts, everything.He filed taxes every year showing $40,000 year income.He had to prove how he obtained all those assets on his income. The math didnt add up.His attorney and a CPA couldnt prove it and to this day he is still paying back over $500,000 in back taxes and penalties, plus he lost everything that was seized.

bigballz · #2 04-15-2006, 05:25 PM

Arn't we glad we use paypal

Nalapoint1 · #3 04-15-2006, 05:47 PM

Like I said. " A lot of you young guys are too stupid to see the writing on the walls." And bigballz obviously falls into at least a part of that category. The IRS got their precedent with PayPal and now Neteller and the others will be easy.

mmcd · #4 04-15-2006, 05:52 PM

[ QUOTE ]
The IRS got their precedent with PayPal and now Neteller and the others will be easy.

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In which district court would the IRS have to file for their subpeona for a company based in the Isle of Man?

Jay Cohen · #5 04-15-2006, 06:35 PM

http://news.com.com/IRS+to+search+Pa...3-6060920.html

It was in Federal court in San Jose, CA.

According to the order, the IRS can review the bank and credit card accounts of PayPal members, providing they meet three stipulations.

One is that a "reasonable basis" exists for believing a person may have failed to comply with IRS laws. A second requirement is the investigation relates to a particular person. Furthermore, the information being sought must not be easily obtained through other sources.

Nalapoint1 · #6 04-15-2006, 08:00 PM

I cant believe some of you are as ignorant as your response suggests. The IRS is playing a game similar to poker. They look at long term results. Every legal move they make today has some relevance to a play they make in the future.

Also some of you are getting hyper for no reason. Or is there a reason? If you do everything legal you have nothing to worry about.

Sort of like getting pulled over by the police and trying to convince him that you never speed but you have a radar detector on your dash. If you dont speed you dont need it.

headturner1 · #7 04-15-2006, 06:51 PM

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In which district court would the IRS have to file for their subpeona for a company based in the Isle of Man?

[/ QUOTE ]

ya, which court would they file that in? i think the IRS may have a hard time with that. i am assuming that paypal is based in the US.

MicroBob · #8 04-15-2006, 09:10 PM

[ QUOTE ]
[ QUOTE ]

In which district court would the IRS have to file for their subpeona for a company based in the Isle of Man?

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ya, which court would they file that in? i think the IRS may have a hard time with that. i am assuming that paypal is based in the US.

[/ QUOTE ]

paypal is in the US
neteller is not.

The IRS can see your neteller records by asking YOU for them though. All they have to do is ask and you are required by law to comply (is my understanding).

All the court decision tells me is that the IRS is making efforts to look at online transactions more seriously. But I already would ahve guessed that anyway.

They may be looking more seriously at larger e-bay sellers who they know are out there and using paypal.

I'm not especially worried.
If they want to investigate me then I hope they find that my payments have been kosher. I've attempted to do them that way at least.

I think it's incredibly unwise to blatantly avoid your tax-burden on your online-poker income these days. If I was doing that then I would be worried.

bigballz · #9 04-15-2006, 11:05 PM

[ QUOTE ]
Like I said. " A lot of you young guys are too stupid to see the writing on the walls." And bigballz obviously falls into at least a part of that category. The IRS got their precedent with PayPal and now Neteller and the others will be easy.

[/ QUOTE ]
I pay my taxes FWIW, an I was just making a half-joking comment that the thing with pay-pal is probobly to hack down on ebay business people or other small business conducting business online, and doesn't directly affect us. But I got your point that the IRS wants people to pay taxes............ orely?

betadecay · #10 04-15-2006, 11:09 PM

Ya, I figured the IRS's issue was with EBAY and not online gambling. Ebay buisinesses have probably been underpaying taxes in very big numbers for the past 5 years.