[Overdrive]

It would all depend on the circumstances of your case. In general the IRS does not want to put you in jail - they want you making an income so you can pay the taxes, penalties and fines to them.

They didn't put Willie Nelson in jail when he owed them MILLIONS in back taxes - Willie just made a cd called the IRS tapes and gave the IRS all the money from that, plus more. And everyone has heard about Richard Hatch the survivor guy who put his million dollar prize straight in the bank and didn't declare it. The IRS even offered him a deal - but he refused it and his case hasn't been resolved yet.

There is also a gigantic difference between a recreational poker player with a regular job and W2's who may not report a few thousand he made playing poker or at a slot machine and some poker pro making six figures without any other income source who decides not to even file. I'm sure the IRS would look at those two cases MUCH differently.

Anyway it would be nice if we lived in a civilized country like Great Britian which logically doesn't tax gambling winnings.