Re: Serious tax problem.. Need advice.
 

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3) Flee to Canada. Is it at all possible to get out of this by moving to Canada? How do tax laws work for internet poker? Do you pay taxes where you live, or where you are a citizen?


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lol

Re: Serious tax problem.. Need advice.
 

Hire a lawyer / CPA. Not to discredit anyone's advice here, but you really need an expert's advice about your current situation.

Re: Serious tax problem.. Need advice.
 

Do not ignore this. It will only get worse if you do.

Hire a professional to help you.

More specifically, hire a lawyer with experience in dealing with the IRS. When you face potential criminal charges nothing less will do. Other experts may also be helpful but you need a lawyer to keep you out of jail.

Bankruptcy will probably not protect you from the IRS in this situation. Ask the lawyer because he knows both the law and more about your exact situation.

Re: Serious tax problem.. Need advice.
 

Hiding income from the IRS is fraud, criminally punisable, non-discharable in bankruptcy.

You have a big problem.

I'd consider a life underground. 12 million illegal aliens can't be wrong!

Re: Serious tax problem.. Need advice.
 

Any idea how they would even know you gamble? If you have not filed, how do they know anything about your financial situation?

Re: Serious tax problem.. Need advice.
 

The government knows alot more than you would think. He uses a U.S. bank I assume. That is most likely the way.

Re: Serious tax problem.. Need advice.
 

How did the IRS arrive at this $60,000 number they say you owe them?

Whether you played live or online there can't have been any reports made to the IRS about how much money you were making, unless you won a large tournment in a casino. Did they base this just on looking at transfers made to your checking account throughout 2001?

Re: Serious tax problem.. Need advice.
 

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You may encounter other problems since online gambling is illegal in USA.

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ummm - NO

Re: Serious tax problem.. Need advice.
 

Do you have to pay taxes if you just play small time and poker is not even close to your main source of income?

Re: Serious tax problem.. Need advice.
 

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Do you have to pay taxes if you just play small time and poker is not even close to your main source of income?

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By the letter of the law, yes. Realistically, the risk is very low if have a regular job and pay taxes and don't report a few hundred or couple of thousand in poker income.

Paul