The critical point is that the IRS cannot share information they have about illegal activities with law enforcement agencies. So whether you are an online poker player, drug dealer, or hired assassin, the prospect of getting arrested for admitting illegal activities to the IRS should not be a deterrent to paying your taxes.

Ed, if you're reading, how do you handle the lack of precedent with regard to paying taxes on online poker winnings? For example, how do you define a 'session'? Do PokerTracker records suffice as a way to substantiate your wins and losses?

Also, is there an accountant or tax attorney in the las vegas area that you would recommend?