irs came a knocking... oops!

[reedmcneal 0]

i prefer the way this country was set up, on SELF DETERMINATION, not having big dady government take care of you, when the IRS was set up the tax was like 2% and supposed to be temporary, a flat tax would be much better, and no i dont want social security, SS is basically the government telling us we cant take care of ourselves so they are gonna hold onto the money until we are old and feeble and nobody cares about us, big crock, if you want socialism go to europe

Ha, didn't know Steve Forbes was on FCP'er. I think the wealthy owe it to this country to pay a slightly higher tax rate. Just my 2 cents.

[blueodum 0]

IRS? Who needs taxes. Look at all those great countries in the world which don't collect taxes. (sw)

[Valuecall 0]

Thanks for this post. When young poker players try to make calculations on whether they can live on $xxx/mo, I think they ignore the tax aspect.I assume there are penalties or interest added to their bill?

If this was in reference to me, then I should tell you poker winnings aren't taxed here.

It wasn't. It was in response to a generic typical USA player who might do "turn pro" math at 2BB/100 and extrapolate a living wage from that without taking into account paying taxes.

[Valuecall 0]

Is there suggested reading somewhere on the site or otherwise for the 'ideal' tax strategy when playing poker as a living? As in, paying enough to stay under the radar, or good ways to hide your earnings?

Since you live in the USA, I would highly recommend you do some reading on how to properly document your poker income and pay the appropriate tax on it. I know there have been lengthy threads on 2+2 (and probably R.G.P) about this topic since many people with a significant amount of income from online poker post there. You will of course use any deductions possible and write off expenses, etc.I don't come armed with links, and I'm about to rush out the door...but I don't know of any players in the USA who have been prosecuted for playing online poker. However, a case somewhere in the mountain West came up last year where a person was prosecuted for not paying taxes on the income from his Poker playing.IMHO, you should make a "best effort" to pay your taxes on gambling winnings.

[CFVPoker 0]

I wasn't aware money made overseas was taxable.

[garamond10pt 0]

I wasn't aware money made overseas was taxable.

In the US, money made anywhere is taxable.

[TobyOrNotToBe 0]

ahhh,, sorry u knumbskulls, I thought i saw 10%, my mistake.I'm at work and mulit tabling, the boss is away. .Plus i did get a little splooge in the eye, But i'm glad to see everyone loves the chance to jump at me when i make a mistake.I hate you all

Royal, I can't read any of your posts with those jugs bouncing.

Me neither

[blueodum 0]

I wasn't aware money made overseas was taxable.Most countries require you to pay taxes on worldwide income in your country of residence (i.e. not necessarily country of citizenship or birth). There may be some exceptions based on specific country-to-country tax treaties. Sometimes you may have a choice in which country to pay your taxes, if you live in one country and earn income in another. The principle of not double taxing the same income usually applies.

[Brisco 0]

It's like the old saying...In the pokergame of life the IRS is the F***ing RAKE!

[btlee 0]

Could you elaborate on this portion more please? "personal expenditures" part.....Did they audit your checking account or something? At what point did in the tax portion did they have to match up your personal accounting stuff vs business?

about 6 mos ago I got a letter. as the principle of the company they sent me something trying to tax the company on our "assets" in 2004 (this is considered $20K by default) I replied that the comany had cease operation in 2003 and had no revenue or assets.now six months later they cross referenced me individually, where I have made $30K in mortgage payments, bought new vehicles for my wife and myself and payed down my student loans.so I get a new letter (not thinking about the last one from 6 mos ago) that says we noticed you've been paying bills, where'd you get the cash? I replied that I was an employee of my company and was paid "consulting fees" (no salary for w2) they say "really. it says here that company no longer operates." doh!I just talked to my attny however, and we're going to claim that the bills were paid out of leftover cash from the company disolvement. plus now that I have a job to "merge" my other income with I might be okay.

[Ron_Mexico 4,219]

trying to F the govt out of their cut is like stiffing the mob. Not a great idea.Bring back your old avatar, I miss it. That was a hot photo. How's the swinger scene when you were in Vegas? You and that tasty European pastry of a wife pick up any lezzies yet?I remember everything.

[btlee 0]

trying to F the govt out of their cut is like stiffing the mob. Not a great idea.Bring back your old avatar, I miss it. That was a hot photo. How's the swinger scene when you were in Vegas? You and that tasty European pastry of a wife pick up any lezzies yet?I remember everything.

I feel you. maybe i should just suck it up, pay the 9G's and start reporting my winning this year (was planning on starting jan 1 anyway)As for the pic, I'd have to reshrink it to fit under the 7mb limit again. Its a pain. As for my woman, shes overseas (her parents) for a month right now. it sucks.

[Jeepster80125 0]

i prefer the way this country was set up, on SELF DETERMINATION, not having big dady government take care of you, when the IRS was set up the tax was like 2% and supposed to be temporary, a flat tax would be much better, and no i dont want social security, SS is basically the government telling us we cant take care of ourselves so they are gonna hold onto the money until we are old and feeble and nobody cares about us, big crock, if you want socialism go to europe

Ha, didn't know Steve Forbes was on FCP'er. I think the wealthy owe it to this country to pay a slightly higher tax rate. Just my 2 cents.

Let's say you make ten thousand dollars in a year, taxed at ten percent for simplicity. You would owe a thousand dollars for taxes. Now let's say I made a hundred thousand dollars taxed at ten percent, again for simplicity. I would pay ten times what you pay, and we are at the same bracket. You are saying you want me to pay a higher percentage? Why? Ten percent of your own income hurts just as much as me paying ten percent of my own income, regardless of the amount. Get it?My father built a health insurance sales agency from scratch 20 years ago. He worked his ass off for his family, and now I am on the board and in the position to take over when he leaves. I grew up, went to school, got my insurance license, and now I work my ass off 50 hours a week so I can make his income. As a wealthy white male in Middle America who owns his own business, why do I "owe it to this country" to pay a higher rate? If I work hard every day, then why should the government get to keep any more than they already do? Why should I pay more taxes for government programs that help "needy" and "underpriviledged" families when I can help my own family?It's sad. In early America when the rich white man didn't want to work, we called it slavery. Now, when people don't want to work in America, we call it welfare.

[bav 0]

...they say "really. it says here that company no longer operates." doh!I just talked to my attny however, and we're going to claim that the bills were paid out of leftover cash from the company disolvement. plus now that I have a job to "merge" my other income with I might be okay.

So you've engaged in willful tax fraud and you've been caught. And now you're contemplating with your lawyer trying to lie your way out of even this? You don't think the IRS is going to demand detailed documentation of your S-corp finances and your income/expenditures? They're used to people lying on their taxes, but once you get caught continuing to try to perpetrate the fraud is really dumb. At this point you're probably facing the standard back taxes and penalty. You're getting off easy...pay your taxes, learn your lesson.

[Smiddywap 0]

Let's say you make ten thousand dollars in a year, taxed at ten percent for simplicity. You would owe a thousand dollars for taxes. Now let's say I made a hundred thousand dollars taxed at ten percent, again for simplicity. I would pay ten times what you pay, and we are at the same bracket. You are saying you want me to pay a higher percentage? Why? Ten percent of your own income hurts just as much as me paying ten percent of my own income, regardless of the amount. Get it? My father built a health insurance sales agency from scratch 20 years ago. He worked his ass off for his family, and now I am on the board and in the position to take over when he leaves. I grew up, went to school, got my insurance license, and now I work my ass off 50 hours a week so I can make his income. As a wealthy white male in Middle America who owns his own business, why do I "owe it to this country" to pay a higher rate? If I work hard every day, then why should the government get to keep any more than they already do? Why should I pay more taxes for government programs that help "needy" and "underpriviledged" families when I can help my own family?It's sad. In early America when the rich white man didn't want to work, we called it slavery. Now, when people don't want to work in America, we call it welfare.

People who are born into poverty don't have the same resources available than those who aren't. While you and I are both able to go to school, someone who has to drop out of high school to become the primary caretaker of their family doesn't have the same opportunities we have.I would love for everyone to compete on an equal playing field from the starting gun and do away with welfare programs but that just isn't realistic. While it's true that life isn't fair, there's no reason to perpetuate this imbalance. I believe each individual should have the ability to create their own fate.As for your first point, yes 10% taken from everyone is equal. However, to say this hurts you as much as the poor isn't true. For example, would dropping from $100,000 to 90,000 affect a person as much as someone dropping from $15,000 to 13,500? It's easy to take care of multiple people with $90,000 a year. $13,500 typically isn't enough to support a family. Therefore, the poorer person is hit harder by the tax.

[PAYforUSC 0]

I wasn't aware money made overseas was taxable.Most countries require you to pay taxes on worldwide income in your country of residence (i.e. not necessarily country of citizenship or birth). There may be some exceptions based on specific country-to-country tax treaties. Sometimes you may have a choice in which country to pay your taxes, if you live in one country and earn income in another. The principle of not double taxing the same income usually applies.

why do we pay sales tax again?

[chipsnski 0]

Thanks for posting a mini update and replying to my question.Good luck to you and please keep us posted on how it turns out etc.

[Don Giovanni 0]

i prefer the way this country was set up, on SELF DETERMINATION, not having big dady government take care of you, when the IRS was set up the tax was like 2% and supposed to be temporary, a flat tax would be much better, and no i dont want social security, SS is basically the government telling us we cant take care of ourselves so they are gonna hold onto the money until we are old and feeble and nobody cares about us, big crock, if you want socialism go to europe

Ha, didn't know Steve Forbes was on FCP'er. I think the wealthy owe it to this country to pay a slightly higher tax rate. Just my 2 cents.

Let's say you make ten thousand dollars in a year, taxed at ten percent for simplicity. You would owe a thousand dollars for taxes. Now let's say I made a hundred thousand dollars taxed at ten percent, again for simplicity. I would pay ten times what you pay, and we are at the same bracket. You are saying you want me to pay a higher percentage? Why? Ten percent of your own income hurts just as much as me paying ten percent of my own income, regardless of the amount. Get it?My father built a health insurance sales agency from scratch 20 years ago. He worked his ass off for his family, and now I am on the board and in the position to take over when he leaves. I grew up, went to school, got my insurance license, and now I work my ass off 50 hours a week so I can make his income. As a wealthy white male in Middle America who owns his own business, why do I "owe it to this country" to pay a higher rate? If I work hard every day, then why should the government get to keep any more than they already do? Why should I pay more taxes for government programs that help "needy" and "underpriviledged" families when I can help my own family?It's sad. In early America when the rich white man didn't want to work, we called it slavery. Now, when people don't want to work in America, we call it welfare.

why are you always so bitter? other people have pointed out whats wrong with what you just said and i agree with them.

[theone 0]

I hear ya knockin, but ya cant come in....