foxwoods gossip

[midas]

Gregg:

I definitely agree with you on this point. Almost all winners are published somewhere on a website (including FW)so the IRS would not have difficulty knowing there was a big win and tracking to see whether the income was reported.

[shaniac]

If I ever won a huge some of money at Foxwoods, like Tuan did, I wouldn't consider trying to avoid the taxes on it. But I wouldn't take it in cash either. I'd be depositing a pretty big check into my bank and the IRS would know about it pretty quickly.

But just for the sake of argument, let's say Tuan is comfortable having all this cash around: isn't he running a much lower risk trying to avoid paying taxes on a Foxwoods tourney-win than he would be trying to dodge taxes on a big win from a casino that DID issue tax forms.

When the IRS shows up at his door asking for their share of the $1.5M, what prevents him from saying "sorry guys, spent it on a crazy weekend in Tijuana, nothing left for you."

Shane

[snakehead]

then maybe it's nothing more than rumor. I have had three players at the commerce tell me he was staked by hassan, and that the split was 50-50. one of them was at the tourney, and one is someone who used to play in your game (dh). funny how these things spread. as for making the money in the larry game and losing it in vegas, that'a what tuan told me while we were playing at the bike last summer.

[snakehead]

[ QUOTE ]
What kind of an idiot would take his winnings in cash?

[/ QUOTE ]

I'm sure he has his reasons, whether they be nefarious or not. I can think of a few words to describe tuan, but idiot isn't one of them.

[midas]

Fear of prison for tax evasion!!

[fnurt]

[ QUOTE ]
If I ever won a huge some of money at Foxwoods, like Tuan did, I wouldn't consider trying to avoid the taxes on it. But I wouldn't take it in cash either. I'd be depositing a pretty big check into my bank and the IRS would know about it pretty quickly.

But just for the sake of argument, let's say Tuan is comfortable having all this cash around: isn't he running a much lower risk trying to avoid paying taxes on a Foxwoods tourney-win than he would be trying to dodge taxes on a big win from a casino that DID issue tax forms.

When the IRS shows up at his door asking for their share of the $1.5M, what prevents him from saying "sorry guys, spent it on a crazy weekend in Tijuana, nothing left for you."

Shane

[/ QUOTE ]

For the record, telling the IRS "sorry, I blew the cash already" isn't the best strategy...

[Lurshy]

[ QUOTE ]
from a casino that DID issue tax forms

[/ QUOTE ]

For the record, Foxwoods does issue 1099-G forms to winners in thier casino (especially big Slot Payouts), but apparently the rules are different for poker, maybe because you are not winning the money from 'the house'.

As for avoiding taxes, remember: Having to pay taxes (via a big check) is usually a good problem, it means you made more money than you expected [img]/images/graemlins/cool.gif[/img]. Getting a big tax refund while short term [img]/images/graemlins/smile.gif[/img], usually means you made less than you expected to [img]/images/graemlins/frown.gif[/img]

[mmcd]

When the IRS shows up at his door asking for their share of the $1.5M, what prevents him from saying "sorry guys, spent it on a crazy weekend in Tijuana, nothing left for you."

He'll still owe them the money (+ interest and penalties).

It's not like they'll just forget about his tax debt once they see that he doesn't have enough in the bank to pay it.

[shaniac]

[ QUOTE ]
For the record, telling the IRS "sorry, I blew the cash already" isn't the best strategy...

[/ QUOTE ]

Which leads me to ask...what if he actually DID blow all the money. He takes his 1.5M in cash, gives for the sake of argument half to Hassan Habib, then goes to the Bellagio and plays $20,000 a hand at blackjack until the remaining 750K is gone. Does he owe the IRS money on the 1.5M or the 750K?

Also, is the IRS man really sitting around watching the WPT on Wednesday night wondering "did Tuan ever pay his taxes on that?"

Anyway, this wasn't my point (not that I had much of a point to begin with). My original question was: If ever there was an opportunity to try and blow off the IRS on a HUGE tournament win, wouldn't a big win at Foxwoods be it?

Shane

[James282]

Perhaps, but there is no such opportunity.
-James