I just won a LARGE sum in the UB Million

[PlayerA]

With any money I transferred to my bank account, I intend to pay taxes. And that would be the only reasonable way to handle a big win. With neteller, I know you can get a debit card. Is there anyway the IRS can get access to neteller records? One thing I've thought about if I get lucky enough to score a few grand is to get the debit card and just start using cash. Of course, if audited, that could draw round-about attention if they notice that I've suddenly stopped paying for stuff with a credit card.

[Kurn, son of Mogh]

Is there anyway the IRS can get access to neteller records?

NETeller is not in the US. The IRS has no jurisdiction over NETeller.

[Goodie]

That's not true, Kurns. If I go down to foxwoods and play 4-8 hold em for a couple of hours, win 200 bucks, no taxes apply. Also, if I win a tourney down there for 2500, which I've done, taxes don't have to be paid. If I win over 5000 in a lump sum, this is where taxes kick in. I was wondering if the same is true online.

Peace

Goodie

[Kurn, son of Mogh]

Absolutely not true. That $5,000 is the threshhold where the casino has to report the win. Technically, you, the taxpayer, must report every single dollar you win while gambling. If you doubt me, call the IRS (from a secure phone) and ask them.

[Goodie]

Kurns, we're talking practicality here. I don't think there's anyone (besides professional gamblers) that report day to day winnings. If the casino doesn't report it, that means we don't have to pay it. If that's the case, I'm going to jail.

Peace

Goodie

[Rushmore]

Goodie, you're making a mistake here. If you are audited, you will need to be able to account for all monies going into your account(s). Of course, any losses which you have properly accounted in a proper ledger can be deducted up to the amount of your winnings.

Always assume you will be audited. Don't subscribe to the "It won't happen to me" theory. It's been known to disappoint.

[Kurn, son of Mogh]

From a practical point of view, of course you have a certain amount of leeway. There's no way the IRS can a) suspect the additional income is there or b) independently verify what it is. Online is different because you begin to create a paper trail when you access the money.

If the casino doesn't report it, that means we don't have to pay it.

I'm nitpicking here, I realize. If the casino doesn't report it, you can get away with not listing it on your taxes, because the IRS has no way of knowing or even suspecting that it's there. But according to the letter of the law, you still have to pay taxes on it.

[Goodie]

Because this is of great interest to me and because I've won over 10 grand online and reported NONE of it, I've decided to create this poll.



Peace

Goodie

[Rick Diesel]

This threshold is incorrect. The threshold in which a casino must issue you a 1099-G is $700, up from $600 in 2003. The threshold will go up by $100 over the next 3 years until it caps at $1,000. If you won $2,500 at a casino and they did not give you a 1099-G, then that casino is acting illegally. This is the reason why you see a lot of small casino tournament payouts that look like:

1st - 2,500
2nd - 1,500
3rd - 1,000
4th - 751
5th - 599
6th - 500
etc

The casinos try to keep their customers happy by giving that extra dollar to someone else, it actually saves the 5th place finisher about 25% of their winnings that they would pay in taxes.

That being said, without a 1099 I wouldn't report anything.

Rick Diesel

[M.B.E.]

[ QUOTE ]
Because this is of great interest to me and because I've won over 10 grand online and reported NONE of it, I've decided to create this poll.

[/ QUOTE ]
This poll is a great idea. People should have more opportunities to incriminate themselves on twoplustwo. If I knew how to use the software, I'd start a poll on how often everyone uses illegal drugs.