Say, you claim all your winnings from gambling online (and have kept good records). Then the IRS does an audit (or whatever the word is---a check on your income.) Fine--you go in and all figures are accurate and match their, etc. Your taxes were done properly !!! Do you then breathe a sigh of relief or does the IRS say---yes, the figures are correct, but you have violated a gambling law by wagering online and....:hung
Do I understand this correctly (The IRS and taxes)?
- Thread starter Whoson1st
- Start date
The General
Another Day, Another Dollar
People try and tell me that the IRS can care less what you do as long as you pay taxes. I do not agree and think they will turn your name in for things that are questionable against the law.
The General
Another Day, Another Dollar
Don't claim em' , but be prepared to pay in-case.
The General
Another Day, Another Dollar
Unless you are scheming for a few 100k, I doubt any jail would even be considered whodat.
I pay and claim. But I make more than enough bets in Vegas and have enough paper to hide theoffshore stuff.
Obviously if you get auditted they will start looking at those bank transfers. But I have to hope that as long as you do "the right" thing they will let the questionable legality issue slide. They basically want their money.
Get a good accountant, thats the best advice I can give you.
Obviously if you get auditted they will start looking at those bank transfers. But I have to hope that as long as you do "the right" thing they will let the questionable legality issue slide. They basically want their money.
Get a good accountant, thats the best advice I can give you.
The General
Another Day, Another Dollar
NEVER pay more taxes than you HAVE to is a good rule of thumb.
wantitall4moi said:
I have to agree with you and not the General. He sounds like maybe he's had a couple to drink.... "never.........
I'm just going to provide the info to Jackson-Hewlett and let the chips fall where they may. The money (a few thousand) has allready gone into my bank acct. from Neteller. I don't understand how trips to Vegas would have any impact on that.
The General
Another Day, Another Dollar
I am sober. :hung Just sharing an opinion.
Whodatman said:
There happens to be a law that prohibits the IRS from ratting on you. Its called the silver plate law which prohibits the IRS from giving you up on a silver plate. But it happened in North or South Dakota (the only known case of a guy charged for betting online and offshore so far). The case is on Nelson Rose's website and the silver plate law can be looked up on Google or Yahoo if you really want to learn more.
We all know you can't trust the feds so if an IRS investigator is having cocktails with his FBI buddy you know they can start an investigation from the info passed amongst each other.
The General said:
LOL---Only joking. I'm looking for a good consensus (One way or the other) Claim or don't claim. It appears to be a close call at present with the do claimers leading by about a length at the top of the stretch.
Your counterpart over at the Rx is in the Claim it camp..A couple at Major---say don't like you.
The General
Another Day, Another Dollar
Game Set Match
The General
Another Day, Another Dollar
Whodat,
A small percentage of us will ever face an audit.
We are gamblers. The odds are in our favor no matter.
A small percentage of us will ever face an audit.
We are gamblers. The odds are in our favor no matter.
If you make more than 10k per year from gambling, pay your taxes. The government doesn't give a shit if you are a player... But if you made money, and don't pay your taxes, they WILL nail you. If you make more than 50k from gambling, and don't report it, you are now in the "Tax Fraud" area - which means potential jail time.
Now, if you pay taxes on "Gambling Income", and all that income is somewhat illegal, you're still fine. I'm pretty sure that tax returns can't be used to prove any crime unrelated to tax offenses. If you paid $1m for taxes on illegal gambling, you aren't going to get hassled.
Btw, I am not a tax lawyer (I mainly did insurance law before switching to this full-time), but I've paid a pretty penny for legal advice on gambling related tax issues. If you make 6-figures from this hobby, send me an email and I'll give you the name of a super tax attorney who does a lot of tax returns for gamblers. It will usually run 2-4k, but there are legal ways to defer your gambling income for almost a year.
Now, if you pay taxes on "Gambling Income", and all that income is somewhat illegal, you're still fine. I'm pretty sure that tax returns can't be used to prove any crime unrelated to tax offenses. If you paid $1m for taxes on illegal gambling, you aren't going to get hassled.
Btw, I am not a tax lawyer (I mainly did insurance law before switching to this full-time), but I've paid a pretty penny for legal advice on gambling related tax issues. If you make 6-figures from this hobby, send me an email and I'll give you the name of a super tax attorney who does a lot of tax returns for gamblers. It will usually run 2-4k, but there are legal ways to defer your gambling income for almost a year.
daringly said:
Thank You daringly. My income from gambling will be under the $10k figure (i think). It's purely a hobby. But as a retired person, on a fixed income any money which goes into my checking account is certain to draw attention. Are you an attorney..........do you have an email address that you can post? Thanks .
If you were to get audited, and it was discovered that you gamble offshore, what laws are you breaking? I know it can be argued that you are breaking the Wire Wager act of 1961, yet as far as I know they are no laws that have penalities or fines against the players. All laws that I know of only impose penailites against the boomakers, as the players are seen as victims. So what risk are you running by being up front with what you do? They can't lock you up, can they?
Surprised to see "The General" supporting the idea of not reporting winnings. I'm sure there there are many out there who are quite capable of puting aside there moral obligations and justify in their own minds not to pay what they owe, but we should all hope that these same individuals would not encourage others to do likewise.
Surprised to see "The General" supporting the idea of not reporting winnings. I'm sure there there are many out there who are quite capable of puting aside there moral obligations and justify in their own minds not to pay what they owe, but we should all hope that these same individuals would not encourage others to do likewise.
The General
Another Day, Another Dollar
Welcome to EOG SIMPLETON
:+thumbs-2
:+thumbs-2
SIMPLETON said:
The majority that I have read say to report any income and I think that's the right thing to do as well.
Does anyone use Jackson Hewlett to have their taxes done here? Don't all speak at once. (To get any response, I'll probably have to ask again in 2006)