|
|
#11
08-12-2004, 07:24 PM
|
|||
|
|||
Re: Are poker winnings considered normal income when it comes to taxes
You are protected. The IRS doesn't share information with Law Enforcement. You have the right not to self-incriminate yourself. If the IRS turned around and reported possible illegal activity, then you would have a possible 'out' on not paying taxes based on the 5th Admendment - right to not self-incriminate. So the IRS doesn't report, and you have no excuse not to pay taxes, illegal activity or no.
If Al Capone had paid taxes, he would have never ended up in Alcatraz. 
|
|
#12
08-12-2004, 07:27 PM
|
|||
|
|||
|
Re: Are poker winnings considered normal income when it comes to taxes
Actually gambling gets shafted even harder. A business is able to carry tax losses forward. So if it loses money one year, it doesn't have to pay as much tax on the profits next year because of the prior loss. Not so with gambling, any time you win, you owe, no matter how many prior years you have lost.
|
|
#14
08-12-2004, 09:56 PM
|
|||
|
|||
|
Re: Are poker winnings considered normal income when it comes to taxes
[ QUOTE ]
Just one quick question as a UK player dont have to worry about taxes but....... [/ QUOTE ] Color me jealous. [img]/images/graemlins/smile.gif[/img] [ QUOTE ] If in most states in the US online gambing is illegal how come it is fine for you to pay taxes on it. [/ QUOTE ] It's not clear to me that it's illegal in most states; there are some which have explicit prohibitions against online gambling, but authorities of any states which do not would have to go through some serious contortions to use existing law to prosecute someone for it. [ QUOTE ] Surely if you are declaring income from online gambling it is admitting guilt if such activities are proved illegal. To me its almost like a drug dealer or prostitute declaring their income from their illegl activities. I realise its a very grey area in the law but it seems a double standard, your government does nothing to protect you when gambling online but is quite happy to take the proceeds. [/ QUOTE ] In the US, one is legally required to declare income from illegal sources, and in fact, tax evasion is one way the feds use to get someone they know is a criminal (e.g., Al Capone), but can't prove it; they audit him, and demonstrate that he's made more income than he's declaring, and send him to the slammer. However, taxing authorities (both federal and state) do not share this information with law enforcement authorities; if they did so, someone could invoke the Fifth Amendment's protection against self-incrimination in defending against the tax evasion charges. -Mike
|
|
#15
08-13-2004, 05:39 AM
|
|||
|
|||
|
Re: Are poker winnings considered normal income when it comes to taxes
[ QUOTE ]
However, taxing authorities (both federal and state) do not share this information with law enforcement authorities; if they did so, someone could invoke the Fifth Amendment's protection against self-incrimination in defending against the tax evasion charges. [/ QUOTE ] I won't get into the problems with the Fifth Amendment self incrimination discussion, I just want to mention that IRC 6103 often prevents disclosure of tax return information by the Service to other government agencies. Of course, with the enactment of the Patriot Act, these limitations on disclosure to other federal agencies have been modified in the context of ferreting out terrorist activities. The reduction of civil liberties in the Patriot Act and subsequent legislation is fodder for another thread altogether...
|
 |
|
|
Linear Mode
