What Was Sam Farha Thinking?

[michiganlaw]

[ QUOTE ]
Maybe I'm mistaken, but I was always under the impression that chops were okay'd and confirmed by casino employees. Therefore, if three people chop, the amount of the chop and the amount remaining that they'll play for is determined and recorded. That way, nobody takes an extra tax burden, and everything's kosher with the IRS. Isn't this how it's done? It's not just a oral agreement between two or three people, right? So given that fact, there's no way your theory is correct.

[/ QUOTE ]

This is absolutely not true. "Under the table" agreements occur all the time. While I'm sure there are instances of the casino being informed of the chop, I know for certain that the Imperial Palace had a $500 buy-in tournament, June 25th, and I met the guy who placed 2nd right after meeting Farha. I told this guy what Farha said, and immediately the guy suggested my theory. He explained that he avoided tax liability himself the weekend before and that the top six finishers had an "informal" agreement to chop...no casino's involved, an agreement they reached during one of the 10 min breaks.

[wonderwes]

To add to this, just after the WSOP 2003, Pokerstars had MM & Farha plays heads up for a payout of 40k. I think each player put up 5k or 10k each and pokerstars matched the rest. I didnt watch the match, but Farha won it in like less than an hour.

Another useless info tidbit.

[Bill Bixby]

Bring more fish in.... Makes perfect sense. Regular guys wins the WSOP, every joe blow wants to play poker now. Bring more fish in....

[J.R.]

you don't get it: if someone earns/receives more income than they declare, they are evading taxes.

[IgorSmiles]

[ QUOTE ]
Bring more fish in.... Makes perfect sense. Regular guys wins the WSOP, every joe blow wants to play poker now. Bring more fish in....

[/ QUOTE ]

Yeah! So let's lose a million dollars on purpose so that next year Harrahs and ESPN make more money...makes perfect sense alright.

[michiganlaw]

[ QUOTE ]
you don't get it: if someone earns/receives more income than they declare, they are evading taxes.

[/ QUOTE ]

Well, then, I'm convinced!!!!! Informal agreements are never entered into in big poker tournaments, because we all know TAX EVASION NEVER OCCURS!! Right? I wouldn't put tax evasion beyond ANY POKER PLAYER! All you "winning" players, I'm positive don't declare 100% of your true winnings to the IRS come April 15th every year.

[keats]

Maybe Sammy didnt want to have to worry about all the interviews and appearences that the champion usaully makes. Even Greg Raymer himself said he doesn't play as much poker after winning the event. Maybe Sammy was happy with his payday and still be able to play in the cash games whenever he pleases. I know Sammy did interviews too and all that but not nearly as much as MM/Raymer. Just my opinion. Im sure either way those it was at least 85% joke.

[Acesover8s]

[ QUOTE ]

In fact, right after I met Farha at the Bellagio I went over to the Imperial Palace to play $3/$6. A guy sitting directly to my left told me (and the dealer confirmed this) that he entered a $500 buy in tourney at the IP last Saturday (not July 2nd) and he took second place (out of several hundred). He said the top six people made an agreement to split the money down the middle; and left $13,000 extra for an incentive for first place. They all walked away with $43,000 (roughly).

[/ QUOTE ]

I have trouble believing that the Imperial Palace, a cardroom who usually has a 3-6 game and a baby NL game got the excess of 600 runners in a 500$ tourney to make this happen.

Good luck with your future delusions.

[J.R.]

your first post stated

[ QUOTE ]
"Yet the winner is looking at a tax liability of roughly 40% of 2.5 million (the winner's purse in 2003), whereas the person who merely places only needs to pay taxes on the second place purse."

[/ QUOTE ]

I pointed out that isn't the case. Regardless of how they try to structure the deal, the second place finisher needs to pay taxes on the amount he receives, not the second place purse

you responded

[ QUOTE ]
explain to me your reasoning as to how this would be tax evasion, counselor? I can think of an obscure way in which this would be de minimus tax evasion; but what is the warrant for your claim? Furthermore, these agreements happen ALL THE TIME, so either everyone is committing massive tax evasion, or its legal!

[/ QUOTE ]

I'm glad to know that u have finally been convinced that this isn't the case and to file as such would be tax evasion.



do people make deals- of course.

do people underreport income- of course.

is it not tax evasion because others do it too- of course not

[RickyG]

[ QUOTE ]
that he entered a $500 buy in tourney at the IP last Saturday

[/ QUOTE ]

Having been to the Imperial Palace, and looked at their card room, I call Shennanigans.