Who Pays Taxes on Poker Earnings? (POLL)

[Jimbo]

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lol what if someone makes like 100k over the course of the year in gross earnings but loses 99k and has 1k profit. I've been reading around and it seems as though that person has to pay higher taxes (higher tax bracket) because of that 100k even though they only profited 1k for the year since theres only a certain % they can deduct as losses... if they even deduct. What happens to this type of person? Do they end up paying a large % tax on that 1k they won? What if a person cant even deduct or itemize or whatever it is... do they pay taxes on 100k even though they only made 1k? lmao, this whole thing is a joke. I've talked to two accountants and both gave me apparently horrible advice. Both said "Off the record, my advice is to not file, you're not making enough for them to audit you". Even though i've had transactions that could have been over the 10k threshold where banks report.. but I broke them into smaller cash outs. Now wtf do i do... what happens if i just report my profits only? When I get audited do i still get the same penalties for someoen who didn't report anything at all? Might be easier to just move to europe :/ Oh but wait, i hear USA citizens are still accountable for any income even when in another country, great. This bites. I've got money that I havent been keeping records for and don't know how to report.... I can't be the only person in this situation. It's stressing me out.

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Here is a good link that helps define a session to satisfy the IRS.

Russ Fox Helps Define a Poker Session