Why we don't have to pay taxes ...

[Corey]

Apparently the BadAdviceGuy gimmick account has a new identity.

[Shoe]

[ QUOTE ]
There are those who have told me they claim all of their live winnings, but have never claimed any online profits and never will. But some on this board feel it is a deadly sin not to claim every cent won everywhere.



[/ QUOTE ]

Makes perfect sense, considering that cash you win in a casino leaves a paper trail and bank transfers to your account do not...

[_Kevin_]

You are a fool if you don't pay taxes on your internet winnings. Your friends advice boils down to you may not get caught right now. This is NOT the same as not reporting is legal. Not reporting internet winnings is TAX EVASION.

I personally don't like the way we have to report gambling earnings and losses (the losses can only come off as itemized deductions, they aren't deducted directly from the winnings) but I'm NOT about to consider not reporting it. If the majority of your income comes from gambling, you can declare yourself a professional gambler and then the laws make more sense (you do deduct all losses and expense from your winnings).

Below are two links that talk about how the IRS is going to try and get a handle on internet poker winnings.
Link 1
Link 2

[Innocentius]

A friend of mine works for the police (he actually investigates car thefts). He gave me a great tip. Don't let anyone see you when you steal cars. If you follow this advice the police won't bother to investigate the cars you steal.

[jwvdcw]

[ QUOTE ]

With my increase in limits (playing as high as 30/60 limit and $50 sitNgos)

[/ QUOTE ]
If you're playing 30/60 limit, then why don't you play higher SnGs?? I mean you lose more on one single bet than you would on an entire tourney.

[Guthrie]

Well that settles it.

You and your friend should start giving "don't pay taxes on internet poker winnings" seminars in Holiday Inn ballrooms around the country. You'll get rich, plus you won't have to pay taxes on that income either.

[_Kevin_]

[ QUOTE ]
Well that settles it.

You and your friend should start giving "don't pay taxes on internet poker winnings" seminars in Holiday Inn ballrooms around the country. You'll get rich, plus you won't have to pay taxes on that income either.


[/ QUOTE ]

Priceless!

[FlFishOn]

"But I believe the better EV play is to pay one's taxes."

On a strictly money basis, cheating on your taxes is very much +EV.

"I'm willing to pay a few thousand dollars per year to keep my chances of being shipped off to federal prison to as close to zero as possible. "

Richard Hatch is going to the gray bar hotel as an example. Guaranteed. You, as a poker player, will not. The IRS will squeeze your nuts til you scream if you're caught but they want the money, not another prisoner.

[MicroBob]

I have no other source of income but poker.

Are you really saying that it would be +EV to simply not report it and take my chances?

I know there's still a good chance that i would get away with it.

But if I didn't report my gambling winnings then that would mean I'm not reporting anything at all....and I think that would likely send up some red-flags at the IRS.

[wall_st]

[ QUOTE ]
I have no other source of income but poker.

Are you really saying that it would be +EV to simply not report it and take my chances?

I know there's still a good chance that i would get away with it.

But if I didn't report my gambling winnings then that would mean I'm not reporting anything at all....and I think that would likely send up some red-flags at the IRS.

[/ QUOTE ]

This sounds stupid but this is what my accountant actually told me. I am sure I am make far less than you however.