Who Reports Their Winnings As Income?

[SinCityGuy]

[ QUOTE ]
I understand what you are getting at, but it is a gross exaggeration. He is nothing like Mohammed Atta, and it makes me physically ill that you would make ANY kind of connection between the two individuals. The nature of your insult was veiled, but it's there.

[/ QUOTE ]

I didn't connect them. They are separate, but each type of person poses a problem for the government. One is a terrorist laundering money, and the other is a person trying to avoid paying their taxes using a similar tactic.

Either way, a proliferation of these types of activities will almost certainly result in a higher probability that the feds will move to ban electronic transfers to gaming sites and to Neteller.

[AngryCola]

[ QUOTE ]
I didn't connect them.

[/ QUOTE ]

I knew you would say this.

That's why I already stated,
"Your insult is veiled, but it's there."

That is all. Thank you.

EDIT- Poorly veiled

[gaming_mouse]

[ QUOTE ]
He is nothing like Mohammed Atta, and it makes me physically ill that you would make ANY kind of connection between the two individuals. The nature of your insult was veiled, but it's there.


[/ QUOTE ]

Angry,

Thanks for sticking up for a fellow Monty Python lover [img]/images/graemlins/smile.gif[/img]. In all honesty, though, his statement was so absurd as to not warrant comment.

gm

[gaming_mouse]

[ QUOTE ]
This is wrong as it would be trivial for the US to prevent(technically make it really hard for the average user) access to party servers so party has a lot to gain by not offending the US.

[/ QUOTE ]

David,

Could you explain? From what I know about the way the internet works, I don't think it would be trivial at all. But I'm not an expert by any means.

gm

[Carl_William]

Just a comment to the Mouse about two guys who told me that the IRS nabbed them real good.

About 8 or 9 years ago, a very visible Lobal tournament & ring game (B&M) poker player told me about his bad experience with the IRS. He won about 100 K over about a two year span at the Bicycle Casino in Los Angeles County, CA; and stashed his cash at the player’s bank at this casino. Somehow somebody else was aware of his keeping his bankroll in the player’s bank and reported same to the IRS (at this time there was a ten-percent reward for helping to nab people who didn’t report all of their income). He told me that he was now obligated to pay the IRS about $500 per month for years – this guy was very bitter. He suspected that the IRS informant worked in the cage at the Bicycle Casino.

I also met another guy “B&M poker player who had a similar experience, and had to make monthly payments to the IRS for an extended period of time. He said, “This was a very bad experience for me.”

The moral of this is: “Some people get caught.”

[gaming_mouse]

Carl,

Thanks for the story. If I start making 100K, I would report most of it for sure. For the amount I make now, it doesn't make sense to (I don't think), as there is little risk of getting caught.

Anyway, I'd still like to learn more facts about how it works, and what methods the IRS uses. From the responses here, it seems like they have everyone scared into submission, and nobody really knows what methods they have access to, but just assumes that they are omnisicient and all-powerful.

My point is just that there are also some people who don't get caught, and I don't think it's just a matter of luck.

gm

[david050173]

[ QUOTE ]
[ QUOTE ]
This is wrong as it would be trivial for the US to prevent(technically make it really hard for the average user) access to party servers so party has a lot to gain by not offending the US.

[/ QUOTE ]

David,

Could you explain? From what I know about the way the internet works, I don't think it would be trivial at all. But I'm not an expert by any means.

gm

[/ QUOTE ]

First off I don't know how exactly it is done, but china and other countries have blocked tons of sites. I can imagine a couple of ways to do this
1) Go the DNS server and remove party poker.
2) there are not a lot of cables going out of the country. Set the routing tables for those to drop all packets to the party poker server
3) require ISPs to run stuff through a proxy. If you just had the top 5 isps to go along with you (AOL,Comcast, SBC, Verizon) you would be able to cut off most users

Obviously these require the help of the companies running the name servers and pipes. In the past companies like MCI, AOL and sprint have had no problem helping the government out. There are ways around these which is why filtering is a losing battle but they could make it very tough for the average user.

[GuyOnTilt]

Hey GM,

2. Cashout using NETELLER, and then withdraw the money using a Neteller ATM card. This is easy and convenient, but probably not too safe. That is, I have no idea if the IRS could get access to your Neteller records or not. Anyone know?

Although Neteller isn't a US operation, I'm almost positive their ATM cards issued here in the US are routed through a US bank. You can check. The "safest" way is to get mailed a check and cash it through a check cashing place and pay the percentage fee. I've never used one, but I would imagine if your check is over a certain dollar amount there would be extra paperwork involved, so you'd want to keep the checks on the light side. The real "safest" way is to claim your winnings as income, like you're legally obligated to do. If you want tax reform, start voting like it.

GoT

[gaming_mouse]

Hey GoT,

Thanks for the reply. It pretty much confirmed what I suspected.

gm

[Wake up CALL]

[ QUOTE ]
Carl,

Thanks for the story. If I start making 100K, I would report most of it for sure. For the amount I make now, it doesn't make sense to (I don't think), as there is little risk of getting caught.

gm

[/ QUOTE ]

Now this is poor thinking, the penalty for getting caught is the same whether it is for $1000 or $100K. You should be thinking the opposite of what you are.

See Title 18 USC § 371 for the penalty for conspiracy to commit tax fraud.