Taxes

[FLironman]

This may be a stupid question but since the on-line sites are out of the counrty, what about taxes on winnings?

[Kurn, son of Mogh]

It's taxable as ordinary income.

[FLironman]

Another maybe stupid question? How does the government get informed of the income? If the sites are out of the country are you on the honor system for reporting the income? I can not imagine that the sites send any information to the IRS.

[Kurn, son of Mogh]

You create a paper trail by regularly moving money into your bank account. How often (or if) this is noticed by the IRS depends on a number of variables, though.