Re: need advice from college students
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I am going to say this as kindly as I can. First, any income you generate, including online poker, is earned income. It is thus reportable.
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Didn't dispute this
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Second, records do in fact exist of your gains and losses. Check your history on any poker site, and you'll see it there clearly.
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Party Poker, based in Gilbatrar, is going to be real quick to offer one its customer's records to a Government that has no authority over it, and is in fact, trying to eliminate it entirely within the US.
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Third, the penalties are HUGE. They can be negotiated down, but that will require a lawyer.
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You can negociate them down to what you underreported plus interest.
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Finally, there are people in the government trying to put the noose on online gambling. They will use the tax code-think Al Capone. Some will get away clean, true. Some will decide to take the risk, true again. But to give carte blance advice not to worry is beyond misinformed and doesn't due squat for someone trying to assess the risk.
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Yeah because online poker playing college students trying to pay tuition online basically equals Al Capone. The advice I gave was the oppisite of what you just said. It did tell the other side of the risk. If OP wanted to pay and declare everything to IRA and FASFA then there would be no risk at all. It's up to him to decide.
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