So if I don't pay my taxes...then what??

[bookie socks]

[ QUOTE ]

He gets audited by the IRS who discovers this

[/ QUOTE ]


How did they find out?

[Overdrive]

It would all depend on the circumstances of your case. In general the IRS does not want to put you in jail - they want you making an income so you can pay the taxes, penalties and fines to them.

They didn't put Willie Nelson in jail when he owed them MILLIONS in back taxes - Willie just made a cd called the IRS tapes and gave the IRS all the money from that, plus more. And everyone has heard about Richard Hatch the survivor guy who put his million dollar prize straight in the bank and didn't declare it. The IRS even offered him a deal - but he refused it and his case hasn't been resolved yet.

There is also a gigantic difference between a recreational poker player with a regular job and W2's who may not report a few thousand he made playing poker or at a slot machine and some poker pro making six figures without any other income source who decides not to even file. I'm sure the IRS would look at those two cases MUCH differently.

Anyway it would be nice if we lived in a civilized country like Great Britian which logically doesn't tax gambling winnings.

[timprov]

[ QUOTE ]
that is the country both my grandparents came from..

[/ QUOTE ]

Oh dear.

[ QUOTE ]
[ QUOTE ]
that is the country both my grandparents came from..

[/ QUOTE ]

Oh dear.

[/ QUOTE ]

What? I don't understand what you mean.

[AcmeSalesRep]

[ QUOTE ]
Anyway it would be nice if we lived in a civilized country like Great Britian which logically doesn't tax gambling winnings.

[/ QUOTE ]

You are certainly free to move to a "civilized country" any damn time you please.

Acme

[kapw7]

Lol. Nice one.
I actually live in the UK at the moment.
I don't understand though how the US government is expecting taxes from something that is supposed to be illegal. Do they tax drug dealers as well?

[Chadt74]

"Do they tax drug dealers as well? "

Yes

http://www.ksrevenue.org/perstaxtypesdrug.htm

ALL income is taxable unless excluded

[spicychili]

[ QUOTE ]
"Do they tax drug dealers as well? "

Yes

http://www.ksrevenue.org/perstaxtypesdrug.htm

ALL income is taxable unless excluded

[/ QUOTE ]

This just proves that your actions, legal or not, the government wants their cut.

[BigBiceps]

[ QUOTE ]
All these tax posts made me want to learn more about just what the consequences of non-payment are (since anyone considering not paying them would probably at the least want to weigh the risks versus the benefits).

So hypothetical:

JACK has a full-time job, but enjoys high limit online poker in his spare time. He makes a poker profit of $80,000 in 2005, but doesn't declare any of it on his tax return.

He gets audited by the IRS who discovers this and tells him that he filed an erroneous tax return by leaving out his poker winnings. It turns out that Jack should have paid approx $30,000 in income tax on his poker profits.

- What happens then? <font color="blue"> When I used to work for HRB, some clients would come in who were having their wages garnished for non-payment of taxes. If they find your actions to be fraudulent as well, there could be additional penalties and/or prison time. </font>
- What is the penalty? <font color="blue"> Penalties and interest can range from 20+% depending on the timeframes and amounts. </font>
- Does JACK then have any kind of black mark on either his credit record or IRS internal records? <font color="blue"> Yes and yes.</font>
- Is his act criminal, and will he have a criminal record?<font color="blue"> Possibly.</font>
- Does it matter whether Jack knew that he was withholding his poker winnings (presumably fraudulent), versus whether he has a reasonable (even if ultimately rejected by the IRS) argument as to why he left them off (let's say for the sake of argument that he was able to make such a showing, even if extremely unlikely -- I only add this twist because from some of the IRS language I read, the penalties are somewhat less harsh if the filer had a reasonable basis for his actions).

[/ QUOTE ] <font color="blue"> I don't know what you are talking about, but you have to pay, and you have to pay in a timely way, that means quarterly, not all at the end of the year. It is just not worth looking over your shoulder all the time for not paying. If it is fraudulent there is no statute of limitations, that means not the normal 3-4 years, but FOREVER. That means 20 years down the road if the government wants to get you, they can dig this up, and imagine the penalties and interest at that time.</font>

I'll pay my taxes when

A. We are out of Iraq
B. Our Representives both Republican and Democrat stop being bought corporation whores..
C. We get some fiscal responsibility..
D. Bush is out of office