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Old 03-08-2005, 05:02 PM
johnfromvirginia johnfromvirginia is offline
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Join Date: Feb 2004
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Default Re: File your Poker Winnings? part 2

I don't know what percentage of the population gets audited, but I do know that the vast majority of recent audits has been on high net worth individuals and small business owners because they are the ones who have the greatest ability to manipulate their taxable income. It seems to me that poker players might become targets to some degree for the same reason. On the other hand, an audit of a typical poker player is not likely to be tremendously profitable for them because it may be difficult for them to find enough unreported income to make such audits worthwhile--they have to find evidence of unreported income. Other things that might make you pop up on the IRS' radar are things like large cash deposits (which are, of course, reported transactions) for people who do not report a lot of income.

That's just my opinion, I could be wrong.
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