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  #1  
Old 12-29-2005, 04:37 PM
golfinguy5 golfinguy5 is offline
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Default Tax question

I'm not sure where this should go so I'll put it here. Do I have to pay taxes on money that I currently have made that is still in my poker stars account? Or do I only have to pay taxes on it once it has been withdrawn.

Thanks
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  #2  
Old 12-29-2005, 05:15 PM
Kurn, son of Mogh Kurn, son of Mogh is offline
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Default Re: Tax question

1) please search the site for tax information
2) until you withdraw the money, how is the IRS going to know you have it?
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  #3  
Old 12-29-2005, 05:30 PM
BigF BigF is offline
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Default Re: Tax question

[ QUOTE ]
1) please search the site for tax information
2) until you withdraw the money, how is the IRS going to know you have it?

[/ QUOTE ]


1) Don't be an a$$. Yes you are supposed to pay taxes on money you have made, including funds in your poker accounts.

2) You get audited by IRS -> IRS can subpoena your Neteller transaction history. IRS can also ask you for all your poker account names/passwords -> Then IRS will know you had the money but you didn't pay any taxes on it.

Oh don't even think about playing hardball with IRS. You have no chance.
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  #4  
Old 12-29-2005, 05:42 PM
Kurn, son of Mogh Kurn, son of Mogh is offline
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Default Re: Tax question

1) Don't be an a$$. Yes you are supposed to pay taxes on money you have made, including funds in your poker accounts

a) I'll be an a$$ if I want to, thank you very much.

b) I know more than one tax accountant who believes that profits in offshore trading accounts are not taxable until the funds are repatriated. Also, there are others that have advised players to use deposits and cashouts as wins and losses, so, again, tyou may be wrong.

IRS can subpoena your Neteller transaction history.

The IRS has precisely zero authority to subpoena non-US businesses

Oh don't even think about playing hardball with IRS. You have no chance.

Who said anything about playing hardball with the IRS? I have repeatedly on this site informed posters correctly about the tax laws of the US. I have repeatedly cautioned people about not annoying the IRS.

Who are you, the tax cop?
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  #5  
Old 12-29-2005, 06:10 PM
BigF BigF is offline
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Default Re: Tax question

[ QUOTE ]

The IRS has precisely zero authority to subpoena non-US businesses


[/ QUOTE ]

I just called Neteller and they informed me that they would cooperate with the IRS in any way possible in case of an investigation. Please call 1-86-NETELLER

IRS can also subpoena your Neteller records from YOU.

Don't be an a$$.
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  #6  
Old 12-29-2005, 07:15 PM
golfinguy5 golfinguy5 is offline
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Default Re: Tax question

Yes you guys are all saying that neteller can will give out any records of your. But lets assume that I never make a withdrawl and all the money is still in my stars account...do i have to pay taxes on what i have made but have yet to withdraw?
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  #7  
Old 12-30-2005, 11:23 AM
Kurn, son of Mogh Kurn, son of Mogh is offline
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Default Re: Tax question

Technically, you must pay taxes an any income earned during the year.

If you leave the money in your 'Stars account and don't report it, there will be a near zero probability that the IRS will catch you. You will however, still be breaking the law.
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  #8  
Old 12-30-2005, 11:42 AM
Kurn, son of Mogh Kurn, son of Mogh is offline
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Default Re: Tax question

IRS can also subpoena your Neteller records from YOU

Of course they can. That is not in dispute.

Neteller and they informed me that they would cooperate with the IRS

Fine, but that doesn't alter the fact that if they choose to say no, the IRS has no jurisdiction over them.

Don't be an a$$.

This is the second time you have said that. Maybe you're offended by my contempt for the absurdity of tax regulations regarding gambling income in the US. If so, tough sh*t.

Now here's a question for you. Assume an individual with, say $50,000 of income from his job (100% W2 income, no investments, no 1099's etc) withdraws, say $1,000 from NETeller after cashing that out from a poker site. Now I agree 100% that he should report that income. However, if said individual chooses not to report it, explain a scenario in which the IRS would subpoena his NETeller recors.

Mind you, an individual with less than $100K of income *and* only W2 income has only a marginally greater probability of being audited than he has of being hit by a meteor. Furthermore, the bank will not expend the effort to report such a small incoming transfer to the IRS. Finally, if in a lter year, the IRS does discover the unreported income, what do they do? The recalculate the tax owed and send the taxpayer a bill (interest and penalties assessed of course), and if the taxpayer pays the bill, that's the end of it.

Now if it's clear there exists a pattern of evasion for a significant sum of money, then the IRS will take legal action that may result in criminal charges. However, the primary responsibility of the IRS is to GET THE MONEY. If they accomplish that and there's no evidence that the problem will persist, they don't waste limited resources on small fish.
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  #9  
Old 12-30-2005, 11:43 AM
cardcounter0 cardcounter0 is offline
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Default Re: Tax question

[ QUOTE ]
Do I have to pay taxes on money that I currently have made that is still in my poker stars account?

[/ QUOTE ]

No. You don't HAVE to pay taxes on money in your poker stars account. In fact, you don't HAVE to pay taxes on anything. The IRS will not kill you if you don't pay any taxes. Of course, they might lock you up for a long time, or financially ruin you, or make you pay and pay for the rest of your life, or slap your ass with so many fines you will never get your head above water again, but NO, you don't HAVE to pay taxes.

Legally, you SHOULD pay taxes on any income that you have "constructive receipt" of. That means money that is readily available to you and under your control. Money in a PokerStars account probably qualifies, because you can cash it out anytime you want, there is little delay in converting it to cash, and there is very little chance that PokerStars won't let you cash it out.

So, yes, legally you should pay taxes on the money in your PokerStars account. Do you HAVE too? No. It is your choice if you want to run the risk of the legal ramifications if you don't.
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  #10  
Old 12-30-2005, 12:36 PM
BigF BigF is offline
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Default Re: Tax question

[ QUOTE ]
IRS can also subpoena your Neteller records from YOU

Of course they can. That is not in dispute.

Neteller and they informed me that they would cooperate with the IRS

Fine, but that doesn't alter the fact that if they choose to say no, the IRS has no jurisdiction over them.


[/ QUOTE ]


I understand you take pride in your perfect record. You "have repeatedly on this site informed posters correctly about the tax laws of the US."

But come on give it a rest.
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