Re: Taxable and/or Disclosable?
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Since the govenment considers online poker an illegal activity,
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Internet poker isn’t ‘illegal.’ The Justice Department claims online poker is in violation of the 1964 Wire Act (which prohibits betting on sporting competitions across state lines using any kinds of telecommunications wiring – phone, fax, internet, or otherwise). However, in 2001 the Supreme Court ruled that the Wire Act doesn’t apply to online casinos (and therefore online poker sites) because gambling games/poker aren’t ‘sporting’ competitions. The Justice Department continues to hold that online poker is ‘’illegal’’, but since the Supreme Court ruled against them, the JD doesn’t bother even attempting to try to prosecute anyone for it, as they’d surely not get a conviction and just waste a bunch of time/money. I'll defer to others if they have more updated/accurate information.
What I am fairly certain of, though, is that the IRS is interested in getting all income reported and taxed - and goodness knows they won't hesistate to audit/penalize/charge.
However, this certainly isn't legal advice, and should be considered as nothing more than an FYI - if the OP (or anyone else) gets hauled away to jail for playing poker online, then so be it. I'm no expert. But again, I reported my online poker winnings last year, and certainly have not been charged with any crime - and I sleep easier for it.
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