Tax thought to ponder

Chipr777 · #1 10-07-2004, 04:12 AM

There's never been a conviction for on-line gaming from a player standpoint but as we all know it is technically illegal in most places in the USA. I would think that by filing taxes for on-line winnings you would be admitting to the government that you do in fact play poker, illegally, on-line. Am I way off base here? This is a night and day comparason but wouldn't it be the same as a drug dealer admiting he sold drugs for a living but decided he wanted to pay taxes on his income?

PuertoKid · #2 10-07-2004, 04:31 AM

The penalties for tax evasion are much greater than any penalities you'd face for playing poker online.

Chipr777 · #3 10-07-2004, 04:34 AM

How do we know that? There's never been a conviction for on-line poker. [img]/images/graemlins/confused.gif[/img]

PuertoKid · #4 10-07-2004, 04:36 AM

lol, well, there have been convictions for tax evasions, which kind of proves my point.

Chipr777 · #5 10-07-2004, 05:11 AM

[img]/images/graemlins/grin.gif[/img] You are correct sir!! But my point is still valid.

MicroBob · #6 10-07-2004, 05:34 AM

I don't know if this is true or not....but last week someone posted that the reason it is okay to file taxes on potentially illegl activity without fear of prosecution has to do with the problems involved with self-incrimination.

In other words (I think)....if they could come after you based on the activities you report in your taxes, then you could decline to file your taxes based on your right to not incriminate yourself.

That is how I understand it anyway. but I am no tax expert and don't really know for certain. I am merely repeating what I remembered reading a few days ago on these forums.

I will say that it sounds extremely logical to me.

FWIW - I am playing online-poker full-time for income and will be filing my taxes as a self-employed individual and am not scared about it in the least.
Last month I sent in my estimated quarterly taxes based on my online-poker income.

Eihli · #7 10-07-2004, 05:41 AM

what kind of records do you keep?

solucky · #8 10-07-2004, 07:30 AM

Hi

I type it in a earlier mail, in europe one was catched because "illegal gambling" not taxes and he must gave back his whole winnings + a prohibition.

regards Wolfgang

MicroBob · #9 10-07-2004, 09:03 AM

Not sure what you mean.

I log my win/loss totals on each site each day.

fnord_too · #10 10-07-2004, 09:48 AM

IANAL but I am pretty sure they cannot use your tax return as evidence against you in this case. I believe there was a ruling (I think supreme court) about this since you cannot be compelled to testify against yourself (fifth ammendment) but you can be compelled to report all your income and pay taxes on it. Maybe an attorney can weigh in here and clear this up, but I am pretty certain that this is the case.

There has been at least one on line gambling conviction, sort of.

At any rate, based on history, not paying your taxes is a greater risk than paying them.