Dumb tax questions.

[Alex/Mugaaz]

1. Is there any possibility of getting in real trouble if you paid the actual taxes you owed, but were unable to provide all the neccessary tracking info. EX. You really owe XX,XXX.XX and you somehow knew this number without having the required information to prove it. If you paid this number and taxes and got audited: Could you get in trouble for insufficient information? Wouldn't the worst result be them investigating you and proving you're right?

Now follow this up. You paid 27,500 in taxes, but got audited and ended up owing 29,200. Would anything happen other than you paying the difference + interest?

2. Are bonuses/rakeback income, a gift, or your own money?

[MyTurn2Raise]

#1...depends if it's deemed intentional. If it is, trouble. If not, most likely pay back with interest and a stern warning to keep better records/ don't do it again.

#2 This quesation has been debated numerous times. Most of the more intelligent posters, ie those who talked with a personal accountant or accountants themselves, say it is income. So, I include it as income.

[TStoneMBD]

rakeback is undoubtedly income, unfortunately

[RED_RAIN]

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Could you get in trouble for insufficient information?

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It is your job (according to IRS) to keep detailed records. Talk to a CPA about what type of detail you need.

[schwza]

if you somehow knew how much you owed, i wouldn't see anything too wrong with falsifying the records.

[WhiteWolf]

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if you somehow knew how much you owed, i wouldn't see anything too wrong with falsifying the records.

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Ugh.

Not having sufficient records = probably a small problem, assuming good faith by the OP.

Falsifying records = felony tax fraud.

[popeye18]

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rakeback is undoubtedly income, unfortunately


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How is rakeback supposed to be reported?

[pudley4]

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rakeback is undoubtedly income, unfortunately


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How is rakeback supposed to be reported?

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um...

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rakeback is ... income

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as income?

[FishHooks]

I think he's asking along the lines of how you report poker winnings in sessions where does rakeback go.

To complicate matters where would bonuses go?

[phish]

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rakeback is undoubtedly income, unfortunately

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Only if you're a winning player. If you're a losing player, it is simply a partial rebate of fees paid, and is not income.