Besides the Ethical Implications........ - Page 6

grimel · #51 08-20-2005, 01:34 PM

From poker only? 7.5% SS/Medicare and another $1500 (depending on deductions).

amulet · #52 08-20-2005, 02:40 PM

it is taxable. there are exceptions, and you can sometimes not pay taxes on the first monies earned in some instances. additionally, taxes paid in one country including withholding are deductable in the US. however, these are the execptions. in almost all cased the tax code is clear. all income is taxable earned anywhere in the world.

FlyWf · #53 08-20-2005, 10:18 PM

This is one of the stupidest things ever said on the Internet. Just wow.

PrincipalSkinner · #54 08-21-2005, 05:00 AM

It may be unpleasant to face, but I believe he is statistically correct. What is stupid about relating the truth?

The Don · #55 08-21-2005, 05:31 AM

...I don't like the whole "support your country" argument. It seems stupid to me that an individual is forced to give up his hard earned money just because he/she happened to be born within certain geographic political boundaries and is forced to be a subordinate under the reign of a particular governing authority.

mscags · #56 08-21-2005, 01:54 PM

Do you have to tax rakeback? What about bonuses?

#57 08-21-2005, 02:09 PM

would my head really explode?

#58 08-21-2005, 02:35 PM

I´m sure they can trace your Neteller as well as accounts on poker sites if they want.

Al P · #59 08-21-2005, 02:51 PM

Go buy a pocket sized papter notebook. Write 4 entries a week in it about your trip to the local casino. Make some wins and some losses. Withdraw your Neteller ATM at that casino. At the end of the year have your losses be equal to your poker winnings.

Now you don't owe any taxes.

Jaquen H'gar · #60 08-21-2005, 10:13 PM

There seems to be quite a few idealistic 20-year olds on this website that have no inkling of a clue about dealing with the IRS. The IRS has one mantra: presumed guilty until proven innocent. The burden of proof isn't on them to prove you evaded, it is on YOU to prove you didn't. Read it again and learn it.

The IRS will see some gambling on your return and either straight up audit you or more likely these days, try a maneuver we are all familiar with. You know how when you flop a hand in the blinds that may be best or not you will make a bet to see where you stand? The IRS does this. They will send you a letter stating they feel you underreported your gambling income by X amount and thus owe them so much in taxes and penalties. Notice, this is before you are even officially audited. They are trying to smell blood in the water. The ONLY answer to an inquiry like this is a letter from YOUR CPA telling them you will GLADLY provide your records just to show them they are wrong. This is like raising the timid bet from the blind player. They will usually fold or try to save face by requesting a document or two then dropping it. If you don't have a CPA on board, they will look at you like you're a weak tight player and try to run roughshod over you.

If you get audited and a single neteller withdrawal is listed on your checking account, that's it; the cat is outta the bag. They DON'T have to ask/subpoena Neteller, all they do is tell YOU to provide your Neteller records. Failure to comply is not an option. On Neteller, they will see Party/Empire/Paradise etc. You will then be asked to provide entire transaction records for each of these sites. Once again for the slow, they DON'T have to subpoena Party, you'll do the work for them. That's not to say they won't ask Neteller/Party etc and if these groups cave, you had better hope the records you provide match theirs.

Most online gamblers think the WTO putting pressure on US gov't to allow online gambling is good. When the US govt allows this, the reciprocal will be Party etc being required to open their records. Then all it will take is one Federal judge caving to the argument that the US govt is losing massive amounts of tax dollars to unreported online gambling income or caving to the argument that terrorists are getting funds by dumping at online sites then a blanket subpoena will be issued and the IRS will ask Party to provide the names of every single US citizen who gambles online. This list will be run against tax returns and booyah. This is about 12-24 months away, possibly.

You think this is paranoid. Can't happen you say. The govt is already holding (for better or worse) people prisoner without charges/court proceedings/trials all in the name of national security. Do you think it will balk at this? Is the govt/IRS evil? Of course not; if they were, they would be easier to deal with. No, they are just a bunch of career bureaucrats with good intentions.

Of course, we know what the road to hell is paved with...