Batch 0 Posted January 28, 2005 Share Posted January 28, 2005 HAHAHAHA.Not too big of a deal.Either deposit and lose it to someone and have them collect so you owe zilch or just don't report it.I don't think they will try and track you over 4 grand.Especially when they are based out of this country.Why even report it and jepordize yourself.Be sneaky Link to post Share on other sites
ncpokerclub 0 Posted January 28, 2005 Share Posted January 28, 2005 Ok, Im not an attorney or a CPA but I do own 2 businesses that do a fair amount of 3rd party labor. The reason I would report you to the IRS if I paid you is because Im taxed on the money I made that I had to pay you. The only way for me to not pay taxes on the money I paid you is to report you to the IRS. Therefor passing the tax liability on to you. These online sites are not regulated by the IRS in any way. Our government is to stupid to figure this out so all this money leaves our country. I dont think that pokerstars is going to report because they really dont care. They have no liability on money made off of US customers. I would not put this in my checking account there you created a paper trial but you are 19 with no assets so why would the IRS audit you. Get you a Neteller account with the debit card and use it that way. Dont sweat it. As for talking to an attorney you would be better off finding a message board that attorneys use and post a question there. If you have any questions please email me I have been audited by the IRS before and I know what they look for. Mainly Incoming deposits and outgoing expenses compared to your W2 and 1099 forms. Link to post Share on other sites
chuckf410 0 Posted January 28, 2005 Share Posted January 28, 2005 ok so you know how on most sites they say "you must be at least 18 years old or the accepted legal age of gambling in your local area, whichever is greater?" (In the state of missouri the minimum age is 21) well on truepoker it just says "by law you must be at least 18 years of age"... so I'm 18 almost 19 pretty soon... so I was like "cool... I'll just play there" no big deal... well I figured that when I file my state tax forms and they see this area where I'm like "and here are the taxes from my gambling earnings" they're gonna be like "wait a sec, isn't this a 19 year old kids tax forms? what is he doing gambling?" and I could possibly get myself into trouble... so I'm gonna talk to an attorney and a tax guy and see what the legal parameters are about this (I know that some sites can get around this law because their servers and buildings aren't based in the U.S. for example TruePoker is based in Costa Rica (therefore not controlled by the IRS) so it may be a loophole that I can get around...So you're saying that playing illegally is part of your ideal 'solid poker' stratagey? Sounds like your solid poker has a weak foundation to me if you can't even legally collect your winnings.... Link to post Share on other sites
digitalmonkey 929 Posted January 28, 2005 Share Posted January 28, 2005 From a Canadian perspective:It's like babysitting; the government would love for you to report your income so they can take their share, but you are not issued a T-4 so there is no record of your receiving any payment. Also, if you're foolish enough to report your winnings don't forget to claim expenses such as internet fees, hydro, etc.... It works both ways.As for the money being tracked or noticed as it is transferred to you...big deal. I can sell you my stereo for $4000 and you can pay me through Neteller...does this mean I have to pay taxes? Fush yo mang! Link to post Share on other sites
justblaze 0 Posted January 28, 2005 Share Posted January 28, 2005 Answers to both the US and Canada question, from your friendly poker authority:1) the Canadian government does not tax gambling winnings. They tax winnings on games of skill, but luckily our legal definition of poker is just as draconian as the US's, i.e. it is a 'game of chance'. Therefore, no tax. period. 2) Jistthefist, you are making a big deal out of nothing. Your poker site will not report earnings to the IRS. Their business is not based in the US, and is in fact illegal according to US law. They will do everything they can to avoid the US government. Depositing 4k into a chequing account will likely not raise any flags either. Transfers of 10k or more raise the automatic flags (and this, incidentally, is why that whole vancouver to seattle thing wouldnt work: you'd be arrested at the border for money laundering). Even if they did audit you and require you to pay taxes, you still arent committing a crime. Online gaming for you is no more illegal than it is for your father. Since online gaming at any age is illegal in the US, there isnt a minimum age. Its illegal at all ages. They choose to ignore this law though, as it would be terrible PR for them to start going after online gamblers. Now, lets say you do get audited, and it is discovered that your mysterious 4k came from online poker. Not to worry, the IRS doesnt give 2 sh!ts where you got your money from, os long as you give them some of it. They will not report you to judicial authorities. They are notorious for doing things like accepting taxes on profits from drug dealers, ignoring SSN theft so they can collect taxes from illegal immigrants, etc. Basically, you have nothing to worry about. Link to post Share on other sites
jeff_536 3 Posted January 28, 2005 Share Posted January 28, 2005 Gambling income in Canada is not taxed unless gambling is your sole source of income (i.e., you're a professional.)Which means, you can go to the track and win $50K in one night on a parlay or something and not be taxed if you have a regular job.But if you only go to the track and make $50K profit per year, then that's taxable.Basically, it's the difference between gambling being a job or a hobby.So, all you online poker players in Canada, as long as you've still got a primary source of income, your online winnings are tax free. Link to post Share on other sites
LIPOKERPACK 0 Posted January 28, 2005 Share Posted January 28, 2005 $4000 isnt really that much money, and it isnt a big deal to not report it. how did you withdraw the $, check, neteller, antoher method? Link to post Share on other sites
IraBear 0 Posted January 28, 2005 Share Posted January 28, 2005 on another note, does anybody know how gambling income is recorded in Canada? Are we even required to list it as income? I honestly have no idea at all how it goes over here.i was asked my father this question...he's a CGA and told me that the only time you have to claim gambeling is if you are a profesional gambeler, so if your main sourse of income is derived from gambeling then you pay tax on it. Link to post Share on other sites
IraBear 0 Posted January 28, 2005 Share Posted January 28, 2005 HAHAHAHA.Not too big of a deal.Either deposit and lose it to someone and have them collect so you owe zilch or just don't report it.I don't think they will try and track you over 4 grand.Especially when they are based out of this country.Why even report it and jepordize yourself.Be sneakyyou do realize that you'd be in even more trouble if you did that...it's called MONEY LAUNDERING Link to post Share on other sites
Guido 0 Posted January 28, 2005 Share Posted January 28, 2005 For those of you not wanting to pay, or thinking about not paying your taxes, please think again.I would rather screw over the mafia then the IRS. At least with the mafia its just a bullet in the back of your head. With the IRS its a long, slow, painful death.No seriously, the IRS is not something you want to mess with. What about you young guys? What happens in six years if they catch up with you and by then you have a car or two, a nice home, a family. Then with the interest that has accumulated on your unpaid taxes, you cant pay it. Then the IRS starts taking your cars and homes and garnishing your wages you are trying to feed your kids with.Paying taxes sucks, but I imagine not paying them and getting caught is much worse. Link to post Share on other sites
Ventrick 0 Posted January 28, 2005 Share Posted January 28, 2005 $4,000 is the grand scheme of things is nothing. Banks do not have to report deposits to the IRS unless more then $10,000 is deposited in single day. Online Poker is not regulated and not legal in the USA from a business perspective. That is why 99% of the online Poker Companies are registered off shore. Being registered off shore they have no reason to report any winnings to the US Government.A quick search of True Poker's site shows that they are Incorporated in Ireland. Do you honestly think that they have to report your winnings to the US Government?"Holding Company Address: TrueCashier Ltd, Mallow, County Cork; Republic of Ireland" Link to post Share on other sites
justblaze 0 Posted January 28, 2005 Share Posted January 28, 2005 That is why 99% of the online Poker Companies are registered off shore.make that 100%. Link to post Share on other sites
Ventrick 0 Posted January 28, 2005 Share Posted January 28, 2005 Heh I was gonna go with 100%, but I left room for some fool who would try to get away with it. Link to post Share on other sites
Karis13 0 Posted January 28, 2005 Share Posted January 28, 2005 I work for a public accounting firm and although I don't do any tax work, we have a full staff here that does. I'll ask them on the issue and keep you posted. I think this is interest of us all especially since we all hope to withdraw 5 digits of profit from online poker. Link to post Share on other sites
KDawgCometh 2 Posted January 28, 2005 Share Posted January 28, 2005 my advice is to report it. In the us gambling winnigs can be offset by gambling losses. you report all your losses too, and then you probably won't have to pay all that much in taxes. The one unfortunate catch to being self-employed in the us is that you get double taxed because your real job takes care of a bunch of taxes that you'd have to pay. If ou consistently make money from a casino, you can also deduct gas and food costs as those are costs of doing your job Link to post Share on other sites
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