Can anyone tell me when I have to start reporting my winnings..?

RPMick · #1 09-12-2005, 12:58 AM

Fair Tax

Everyone pays taxes. Even internet gamblers.

-Ryan
(Disclaimer: This link in no way promotes, accepts, or supports this idea. Simply used to inspire thought)

Pokerprowannabe · #2 09-12-2005, 04:10 AM

I have been wondering the same thing myself, to pay or not to pay? I average about $2000/mo playing online and never withdraw more than $300 at a time. However I see one difference between your senario and mine. Your only income is online poker, and you have bills so where does the money come from? However in my case, I have a $65K/yr job to help hide my winnings so of course in my mind I want to believe that there is no way I would ever get audited... right?
There is one thing that really scares me though, what happens when I win the WPT and have to claim 1.2 million? That might raise a red flag somewhere, and when the IRS goes back over the last 4 years and sees that I made $72,000 online, (and I am quite sure they would dig into it) I suspect I could be in a little trouble.
So start paying now while I am a newbee, or hope like hell every year that I don't get audited and take my chances.

Decisions decisions...

wait a minute, I just won 1.2 million, WTF do I care?

jrz1972 · #3 09-12-2005, 08:54 AM

It doesn't matter how often you withdraw.

For the sake of argument, let's set aside the fact that you're willfully evading taxes and leeching off the rest of us. Let's look at it just from the standpoint of what kind of risk you're running.

It is unlikely that you will be audited. (That statement is true for just about everyone). But if you do happen to be selected for an audit, you are hosed. The IRS will see EFTs to/from Neteller or PayPro on your bank statements, and they know that means you have a pot of undeclared cash sitting out there someplace. At that point you are looking at back taxes, interest, penalties, and a possible felony charge.