Re: Tax return question
 

What do you mean by you must notify the IRS in that $10,000 situation. Like that instant, or just in your IRS report for that year?

Re: Tax return question
 

[ QUOTE ]
Additionally if you ever have more than 10,000 AT ONE TIME in an offshore business or account (such as Neteller) you must notify the IRS.

[/ QUOTE ]

This is true if your total out of country money is over 10k, right? Not just 10k at one spot. If you have 5k in Neteller, 3k at Party, and 3k at Stars, I think this qualifies. I could be wrong, but I've been careful to stay below 10k total just to be on the safe side.

Re: Tax return question
 

[ QUOTE ]
If you're reporting less than $100,000 in income *and* it's mostly W2 income (wages, salaries & tips) you have slightly less chance of being audited than of being eaten by a shark.

[/ QUOTE ]

Odds of shark attack if you are in the US one in ten million. Odss of being audited by the IRS with an income of between $25K and $100K are about one in one hundred.

Jimbo

Re: Tax return question
 

Are the wins online or in a casino?

If in a casino, and no tax form, I would be inclined to believe I never won anything.

Re: Tax return question
 

[ QUOTE ]
Are the wins online or in a casino?

If in a casino, and no tax form, I would be inclined to believe I never won anything.

[/ QUOTE ]

[img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/diamond.gif[/img]

Re: Tax return question
 

I'm told (by pokerstars and Party) that they do not report any information to any governments regarding customer transactions. Is this a moot point if I'm using netteller and/or depositing cashouts directly to my checking account (so the IRS would be able to track easily)?

Seperate scenario: I cashout for less than $10k from an on-line site via check which I cash at some place other than my personal bank. Appear to be a safe way to cash out and not be accounted for???

Re: Tax return question
 

[ QUOTE ]
Seperate scenario: I cashout for less than $10k from an on-line site via check which I cash at some place other than my personal bank. Appear to be a safe way to cash out and not be accounted for???

[/ QUOTE ]

Ever try to cash a check at a bank where you don't have an account? Unless it's a branch of the bank it's drawn on, I doubt you'll be successful.

Re: Tax return question
 

[ QUOTE ]
[ QUOTE ]
If you're reporting less than $100,000 in income *and* it's mostly W2 income (wages, salaries & tips) you have slightly less chance of being audited than of being eaten by a shark.

[/ QUOTE ]


Odds of shark attack if you are in the US one in ten million. Odss of being audited by the IRS with an income of between $25K and $100K are about one in one hundred.

Jimbo

[/ QUOTE ]

You probably have a better chance of being audited if you itemize. That schedule A is where people get cute. I know that claiming Moving expenses is a red flag.

Re: Tax return question
 

[ QUOTE ]
I'm told (by pokerstars and Party) that they do not report any information to any governments regarding customer transactions. Is this a moot point if I'm using netteller and/or depositing cashouts directly to my checking account (so the IRS would be able to track easily)?

[/ QUOTE ]

I'm pretty sure this doesn't matter if you are audited. I've read (but I'm not sure) that the IRS can simply require you to provide the documentation. So even if the site won't give it to the IRS, the IRS can demand the records from you and you will have to get them from the site. Not positive on that, but it's what I've read and it makes sense.

Re: Tax return question
 

I'll agree my reply was incomplete, but I stand by the concept.

The IRS, like any federal agency, is understaffed and underfunded. In their goal to maximize collections, they focus a huge amount of attention on the places they *know* there is unreported income: cash businesses.

The OP is filing his first tax return. Its doutful he's in an income range that will attract attention.

With respect to the $10K in an offshore account comment. Unless he transferred that much to NETeller from his US bank, or brought enough back to his account, there is no paper trail to trigger the audit.