Re: The Tax Man Cometh
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But what do you do if you get audited next year and they say you owe them $200,000 in unpaid taxes, penalties, and interest? [img]/images/graemlins/frown.gif[/img]
Just because you havn't been caught at this point doesn't mean cheating on your taxes is a smart thing to do. A lot of people here have speculated that in the next few years the IRS may start taking a closer look at poker winnings now that it has become so popular...
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If they audit him and force him to report winning sessions as income and losing as deductions, the main difference is going to be that he'll lose the standed deduction which will add less than $2000 to his tax liability. Let's not blow this out of proportion. I think for online poker, a good case can be made that a year's play is a "session". Not reporting winnings not cahsed out is much riskier. That could result in substantial additional income, interest and penalties if they rule against you.
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