[Mempho]

[ QUOTE ]
Anyone expecting any guidance in the near future from the IRS on this? Given the questionable legality of online poker anyway, and the realitive lack of action on the IRS's part here, I've always assumed that the IRS and the government in general would clarify their position. Hopefully, in the form of a federal law defacto legalizes internet gambling and lays out a clearer taxation policy.

I think it's totally ridiculous to expect some college student to report 1.5 grand of poker income over the course of a year (just as very few folks report marginal winnings at the slots). But at the same time, someone making 100k+ clearly needs to report it as income, and hopefully have it taxed as normal income would be.

[/ QUOTE ]

The IRS doesn't care. You can write "drug dealer" in the occupation space and they really don't care. They just want their part, whether the income is legal or illegal...meaning that the government doesn't have to clarify anything concerning it's legality. The IRS has already clarified their position that they can tax it, however.