Thread: Tax question
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Old 12-30-2005, 11:42 AM
Kurn, son of Mogh Kurn, son of Mogh is offline
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Join Date: Sep 2002
Location: Cranston, RI
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Default Re: Tax question

IRS can also subpoena your Neteller records from YOU

Of course they can. That is not in dispute.

Neteller and they informed me that they would cooperate with the IRS

Fine, but that doesn't alter the fact that if they choose to say no, the IRS has no jurisdiction over them.

Don't be an a$$.

This is the second time you have said that. Maybe you're offended by my contempt for the absurdity of tax regulations regarding gambling income in the US. If so, tough sh*t.

Now here's a question for you. Assume an individual with, say $50,000 of income from his job (100% W2 income, no investments, no 1099's etc) withdraws, say $1,000 from NETeller after cashing that out from a poker site. Now I agree 100% that he should report that income. However, if said individual chooses not to report it, explain a scenario in which the IRS would subpoena his NETeller recors.

Mind you, an individual with less than $100K of income *and* only W2 income has only a marginally greater probability of being audited than he has of being hit by a meteor. Furthermore, the bank will not expend the effort to report such a small incoming transfer to the IRS. Finally, if in a lter year, the IRS does discover the unreported income, what do they do? The recalculate the tax owed and send the taxpayer a bill (interest and penalties assessed of course), and if the taxpayer pays the bill, that's the end of it.

Now if it's clear there exists a pattern of evasion for a significant sum of money, then the IRS will take legal action that may result in criminal charges. However, the primary responsibility of the IRS is to GET THE MONEY. If they accomplish that and there's no evidence that the problem will persist, they don't waste limited resources on small fish.
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