Taxes?

[CreamPuff]

So Mike, are you implying that if he declared
this income he would be arrested?

As far as the IRS goes, they NEVER report how
you made the income to any other agency (FBI, ATF, etc).
So he wouldn't have anything to fear as a direct
result of declaring the income.

Jay Cohen is in jail for being part owner of an
offshore sports book. But this was because they
were taking phone wagers and supposedly violating the Wire
Act...The internet transactions were brought
up in the trial if I remember correctly, but nobody
seemed to really understand client/server issues,
and didnt seem like much of a factor.

So the people endorsing the sites like Caro and
Sexton probably have nothing to fear.
The actual owners may be in more of a gray area.
Perhaps why paradise owners keep such a low profile.
I know if I had the opportunity to own one 2 years
ago, Id take the gamble in a heartbeat.

[GrannyMae]

So the people endorsing the sites like Caro and Sexton probably have nothing to fear...

this is dead accurate.

remember russ boyd recently not only being on US soil, but actually taunting his creditors while playing a final table.

they are not after poker operators.

just like CreamPuff explained here, Cohen is in jail for taking bets over the phone, not running, consulting, or even STEALING from the public via poker sites. he was targeted (for whatever reason), and the law used to imprison him was not only archaic and obscure, but interpreted the way the DA wanted it to be read in order to facilitate the prosecution.

if boyd had no problems, nobody will.

ps. re: the topic. pay your fuKing taxes!

[BillE]

could you please elaborate or point me to a site where i could hear more about boyd's taunting?

thx

[GrannyMae]

could you please elaborate or point me to a site where i could hear more about boyd's taunting?

my bad BillE.

what i was referring to was the posts he made at rgp the night before the tourney ended where he stated that he needed to win it to pay his debts.

i found it to be very obnoxious that the only solution he really presented was that he needed first to pay off some debts. my use of the word taunt was misplaced. i meant to imply arrogance.

[mchilger]

If you get audited, I would think that it would be very hard to explain all of the movement in and out of your account for your winnings.

The two best ways that I know how to reduce the tax bill is as follows, although I know neither one is really ideal depending on your situation:
1/ Move overseas. Automatic $80K+ deduction. One other benefit is the time change. It is great playing at 5:00 in the afternoon in New Zealand against players playing at 1:00 AM on the east coast.
2/ There are 2 ways to report earnings, part-time or profesionally. If professional, you can deduct all poker-related expenses such as computer, office space, Vegas trips, etc. However, professional players must pay SSN.

Probably not what you were looking for. The following website sells an excellent handbook that discusses all poker matters relating to taxation. http://questions@rbstaxes.com/

Best of luck, Matthew