Re: I talked to tax adviser today
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According to him, when you buy into a site you don't have to report winnings/losses until you convert back to currency, since while it's in your Party account it's "chips". So, when you deposit money into Party you don't have to claim it until you pull it back to your Neteller account.
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I'm going to play the "I am a lawyer" card, even though I'm far from the only one who reads this site. That advice seems 100% incorrect to me.
For one thing, this practice would make it far too easy to shift income from one year to the next, something the IRS is particularly sensitive too. That's far from the only issue, however.
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The vast majority of poker players are losers. What's the threshold for the IRS to require you to withhold estimated taxes quarterly? A few years of consistently winning? Professional status?
I'm somewhat confused by the "if you underwithhold by greater that $100 you'll be penalized" line.
Dan
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