1. There is a law that criminal income reported to the IRS can not be used against you.
2. Gambling is not illegal federally. It is illegal to book bets federally if you make more than $2000 in one day or work in a group of 5 or more people.
3. Don't report it as offshore illegal gambling. Report the income as ecommerce or simply as gambling.
4. Not reporting your gambling income is illegal.
-Sean
2. Gambling is not illegal federally. It is illegal to book bets federally if you make more than $2000 in one day or work in a group of 5 or more people.
3. Don't report it as offshore illegal gambling. Report the income as ecommerce or simply as gambling.
4. Not reporting your gambling income is illegal.
-Sean
Years I win money I don't report the winnings, because:
A) If I lose I can't deduct the losses and get money back, absolutely one-sided policy by the govt, either you pay money on winnings or deduct losses equal to your winnings. Govt collects but never pays.
B) Government has clearly shown gross fiscal irresponsibility as far as using tax revenue generated. If it was going to fix our streets and pay for our schools I'd be paying less taxes and my money would be going to a worthy cause. I'm not going to pay them extra taxes so the govt can buy $600 hammers, give $3 billion to Israel every year and build schools in Iraq that will just get bombed out, all while our national debt is over $8 trillion dollars. Get a fucking clue already.
Some of you might not like my stance, if you don't then fix the govt and then give me some morality speech about not paying my "fair share".
Unfair practices and gross irresponsibility on their part doesn't mean I have to be stand-up on my end about it.
A) If I lose I can't deduct the losses and get money back, absolutely one-sided policy by the govt, either you pay money on winnings or deduct losses equal to your winnings. Govt collects but never pays.
B) Government has clearly shown gross fiscal irresponsibility as far as using tax revenue generated. If it was going to fix our streets and pay for our schools I'd be paying less taxes and my money would be going to a worthy cause. I'm not going to pay them extra taxes so the govt can buy $600 hammers, give $3 billion to Israel every year and build schools in Iraq that will just get bombed out, all while our national debt is over $8 trillion dollars. Get a fucking clue already.
Some of you might not like my stance, if you don't then fix the govt and then give me some morality speech about not paying my "fair share".
Unfair practices and gross irresponsibility on their part doesn't mean I have to be stand-up on my end about it.
I am with Marco on the fact that you must pay tax if you win but than you could lose more the following year and be out of luck...makes no sense.
I'm not sure how else they could do it though but it still seems unfair and would not be worth it.
2005 you win 30k must pay tax , so off the top you lose 10k back to govt
2006 you lose 30k and you get nothing back
Your income total would be even but Uncle Sam would be up 10k
I'm not sure how else they could do it though but it still seems unfair and would not be worth it.
2005 you win 30k must pay tax , so off the top you lose 10k back to govt
2006 you lose 30k and you get nothing back
Your income total would be even but Uncle Sam would be up 10k
First the majority of people are losing and just a very low percent are winning. So the governement would be wasting their time and money going after individual gamblers. They go after the books, like BOS, its far more profitable.
Second the offshore books dont report your winnings/losses to the government.
Third if you are a bigtime player or have several areas of your taxes that raise red flags then I would, if not I would not bother.
Most CPAs say dont bother about it although this could be changing in the coming years.
If you want to follow the rules by the book then you should no matter what. If you follow the rules by the book as far as traffic laws you go 55 on the highway not 56 or 57. (that is if the speed limit is 55)
Second the offshore books dont report your winnings/losses to the government.
Third if you are a bigtime player or have several areas of your taxes that raise red flags then I would, if not I would not bother.
Most CPAs say dont bother about it although this could be changing in the coming years.
If you want to follow the rules by the book then you should no matter what. If you follow the rules by the book as far as traffic laws you go 55 on the highway not 56 or 57. (that is if the speed limit is 55)
You don't have to specify what type of gambling you do. Heck you could win at sportsbetting and say the money is from playing blackjack, poker or the home game you and your buddies have. I don't think that they are going to track you down if it looks like you are paying your taxes. But then again there is the story of the car salesmen from North Dakota that was trying to be honest with his income and ended up getting busted and fined.
He was making more money sportsbetting than selling cars so he put down as his profession and ended up getting questioned about it. He paid a $500 fine for some dumb law about making too large a bet in North Dakota. It was really stupid.
He was making more money sportsbetting than selling cars so he put down as his profession and ended up getting questioned about it. He paid a $500 fine for some dumb law about making too large a bet in North Dakota. It was really stupid.
For the ones on here that sometimes do pay taxes on it, sometimes dont, I never even thought of not paying them. How could you not, doesnt western union report all their transactions? If you didnt report it, but western union has it documented that they paid out whatever amount to you, wont that come back to bite you in the ass? I'm not familiar with what western union does tax time as i'm new to this. Also, if you had them mail u a check and u went to some random bank to cash it, dont they report it as well?
"YOU are the one who needs to get a clue. Try to find another way to express your liberalism and dissatisfaction with the man, other than tax evasion."
Unless you are completely blind you will notice that the government has little control over spending and how much and where the money goes.
If you are disturbed about my seemingly unpatriotic stance about the tax system and govt, then fine. Pay all your taxes and sit back in your rocking chair and feel your patriotic glow thinking everything is great and the government is doing a good job. Let them do what they want with the money because it doesn't matter, right?
People like me have a different stance and know that the money we pay in taxes is given to the government for defined needs and not to be intended for frivolous use and flat-out waste as is the case with a lot of government programs. We entrust them with that money for running the infrastructure of our country. They have the duty and should be responsible about how they handle that money, plain and simple.
If you had an exwife and was paying child support, you'd be pissed off if the court asked you to pay more money and you found out the money you already sent was going for her drug habit or new boyfriend, and your child was walking around without shoes.
The government is being nothing less than a deadbeat dad in terms of fiscal responsibility and I have the absolute right to feel the way I do and respond to government policy the way I do.
Why should I be so above the board when they're operating like a bunch of carefree corrupt pricks?
Unless you are completely blind you will notice that the government has little control over spending and how much and where the money goes.
If you are disturbed about my seemingly unpatriotic stance about the tax system and govt, then fine. Pay all your taxes and sit back in your rocking chair and feel your patriotic glow thinking everything is great and the government is doing a good job. Let them do what they want with the money because it doesn't matter, right?
People like me have a different stance and know that the money we pay in taxes is given to the government for defined needs and not to be intended for frivolous use and flat-out waste as is the case with a lot of government programs. We entrust them with that money for running the infrastructure of our country. They have the duty and should be responsible about how they handle that money, plain and simple.
If you had an exwife and was paying child support, you'd be pissed off if the court asked you to pay more money and you found out the money you already sent was going for her drug habit or new boyfriend, and your child was walking around without shoes.
The government is being nothing less than a deadbeat dad in terms of fiscal responsibility and I have the absolute right to feel the way I do and respond to government policy the way I do.
Why should I be so above the board when they're operating like a bunch of carefree corrupt pricks?
MARCO,
are you a clown? the goverment is not asking you for your tax money, they are TELLING you. enjoy jail once you get caught.
but than again you can tell the court your story about why you are not paying, yes i am sure they will see it your way, you will really open everyones eyes with that great argument. :finger:
once again, are you a clown?
are you a clown? the goverment is not asking you for your tax money, they are TELLING you. enjoy jail once you get caught.
but than again you can tell the court your story about why you are not paying, yes i am sure they will see it your way, you will really open everyones eyes with that great argument. :finger:
once again, are you a clown?
A few points and then the end of my discussion on this subject as it has been discussed 1000 times and regardless of how many times, someone lays out the real laws, people debate it.
At this time, not paying your taxes is the only way you can be arrested as a gambler unless you live in one of the few states that makes gambling a misdemeanor or Washington where they make it akin to rape.
To follow federal law, you must pay your taxes on gambling winnings.
It is legal to file as a business or partnership if you can show you were an active participant in the business (The IRS defines active participant (Read the real definition, don't ask on a forum, the IRS makes it readily available)- it is fairly broad - just about everyone posting on a forum and making bets is an active participant. Note, the IRS just found that a business does not necessarily need to have a chance to profit. It does require that you believe it could profit.) If you file as a business, you can write off losses. You can also carry losses forward into subsequent years. You can also write off expenses (Wire fees, travel, 1/2 meals while traveling for business related travel, books on the subject, payments to cappers, etc) Losses can be written off vs. other income. There was just a case in MN where a woman wrote off slot losses as a business. She played nearly every day and lost heavily. The MN courts upheld she was running a business as she thought she could profit no matter how ridiculous her notion was. (There is no law against stupidity) It seems reasonable to simply count money in as profit and money out as loss as long as you have records. I do not believe the IRS expects a list of every wager or every blackjack hand or every dice roll ever played. This would be impossible. They do expect to see bank statements showing deposits and withdrawals if they audit you.
There is no law that says it, but I believe you will trigger fewer audits by filing as an Ecommerce or Entertainment business than saying, Hey uncle sam, I am betting sports.
Read http://www.usdoj.gov/criminal/cybercrime/kvd0698.htm for how the DOJ interprets the wire act. They very clearly state that the wire act is not to be used against mere bettors, but only against people offering lay bets at a profit (Bookies) It would be very hard for the federal government to now arrest an individual bettor after putting in print that they do not feel the wire act pertains to bettors - would seem to be a good defense to have a copy of this. I quote "Finally, I would like to comment on two aspects of existing legislative proposals regarding Internet gambling that the Department opposes. First, and most significantly, the Department strongly opposes any legislation that would seek to make the activities of mere bettors -- those not in the business of betting or wagering -- a violation of federal law" The government does not seem to make a bettor in the business by being a good bettor. The government defines in the business as a bookie. The federal government has never prosecuted a bettor. If you are lucky to be the first, well then you have some really shitty luck.
I can not seem to find it now, but I have read several times that the US government considers someone in the business of booking if they offer services to 5 or more bettors. If someone can find this, I'd appreciate it. I will look for it. I can not recall if it is an actual law definition or from case law. I believe the idea is to not criminalize saying to your golfin buddy, I'll give you 2 to 1 odds that I beat you.
-Sean
At this time, not paying your taxes is the only way you can be arrested as a gambler unless you live in one of the few states that makes gambling a misdemeanor or Washington where they make it akin to rape.
To follow federal law, you must pay your taxes on gambling winnings.
It is legal to file as a business or partnership if you can show you were an active participant in the business (The IRS defines active participant (Read the real definition, don't ask on a forum, the IRS makes it readily available)- it is fairly broad - just about everyone posting on a forum and making bets is an active participant. Note, the IRS just found that a business does not necessarily need to have a chance to profit. It does require that you believe it could profit.) If you file as a business, you can write off losses. You can also carry losses forward into subsequent years. You can also write off expenses (Wire fees, travel, 1/2 meals while traveling for business related travel, books on the subject, payments to cappers, etc) Losses can be written off vs. other income. There was just a case in MN where a woman wrote off slot losses as a business. She played nearly every day and lost heavily. The MN courts upheld she was running a business as she thought she could profit no matter how ridiculous her notion was. (There is no law against stupidity) It seems reasonable to simply count money in as profit and money out as loss as long as you have records. I do not believe the IRS expects a list of every wager or every blackjack hand or every dice roll ever played. This would be impossible. They do expect to see bank statements showing deposits and withdrawals if they audit you.
There is no law that says it, but I believe you will trigger fewer audits by filing as an Ecommerce or Entertainment business than saying, Hey uncle sam, I am betting sports.
Read http://www.usdoj.gov/criminal/cybercrime/kvd0698.htm for how the DOJ interprets the wire act. They very clearly state that the wire act is not to be used against mere bettors, but only against people offering lay bets at a profit (Bookies) It would be very hard for the federal government to now arrest an individual bettor after putting in print that they do not feel the wire act pertains to bettors - would seem to be a good defense to have a copy of this. I quote "Finally, I would like to comment on two aspects of existing legislative proposals regarding Internet gambling that the Department opposes. First, and most significantly, the Department strongly opposes any legislation that would seek to make the activities of mere bettors -- those not in the business of betting or wagering -- a violation of federal law" The government does not seem to make a bettor in the business by being a good bettor. The government defines in the business as a bookie. The federal government has never prosecuted a bettor. If you are lucky to be the first, well then you have some really shitty luck.
I can not seem to find it now, but I have read several times that the US government considers someone in the business of booking if they offer services to 5 or more bettors. If someone can find this, I'd appreciate it. I will look for it. I can not recall if it is an actual law definition or from case law. I believe the idea is to not criminalize saying to your golfin buddy, I'll give you 2 to 1 odds that I beat you.
-Sean
http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00001955----000-.html
This law defines illegal gambling business federally.
This is where the 5 people come from. It also defines business as accepting bets, setting up a pool, creating a lottery, etc.
No where does it define a gambling business as a profitable bettor.
-sean
This law defines illegal gambling business federally.
This is where the 5 people come from. It also defines business as accepting bets, setting up a pool, creating a lottery, etc.
No where does it define a gambling business as a profitable bettor.
-sean
but what happens if u miss a transaction or two. lets say yiu make 10,000 in winnings, u pull it out and claim it. then what if another time, u did a western union for 500 dollars or something small ike that for the weekend and u didnt claim it. Lets say u forgot or whatever , i dunno. does western union report your winnings?
