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Old 12-29-2005, 05:56 PM
Lloyd Lloyd is offline
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Join Date: Aug 2004
Location: San Francisco
Posts: 412
Default Re: Pokerdb and the IRS

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I'm in no way a tax expert, but the little bit that I've read suggests you need to report your winnings per session, and that one day is a reasonable length for a 'session'. So while you aren't allowed to report only your net profit unless you file as a pro, you don't have to report every single tournament win, just the amount you win or lose in a given 'session' (day). Pokerdb, then, won't necessarily show even the minimum amoung that one ought to be reporting.

Once again, that's only my amateurish understanding, and I'm in no way confident this is correct.

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Bleh, tax issues in MTT. Don't like it.

You are correct in that if you do not file as a professional gambler you need to report on a per session basis. Furthermore, your losses are not deducted from your winnings. You report your winnings on the income side and your losses as an itemized deduction (not subject to the 2% floor and only to the extent of your winnings). So it's possible that you have ENORMOUS income AND losses from gambling, separately, even if you have 0 net winnings. This would certainly be a flag for the IRS.

Most poker players who are successful and play often would have some advantage of filing as a pro. I'm not a tax professional but there are plenty of books and people who can help with this.

I see very little benefit in the IRS looking up a nickname on Pokerdb and using that against you. I would be more worried that they subpeona records from Neteller or simply do an audit of your bank account and question as to how those funds suddenly appeared.

And yes, the easiest and best answer is to simply pay your taxes. I'm all about pushing the grey area but this is beyond your opinion and amounts to fraud (i.e. fines and possible jail time).
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