Originally Posted by sky4ever
I don`t think that this will ever be a real issue since they can`t ever track your profits unless every poker room out there will one day cooperate with the IRS
I can assure you that if the UIGEA gets overturned or an exception is made for online poker, then it will be because the US plans to regulate and tax it like they do other legal domestic gambling activity. And what are you going to do if, say, PokerStars
is told they can legally operate in the US but
they must turn over the records of all US winnings paid over the last X years? While probably unlikely, it could happen. The IRS doesn't have
to have a TIN/SSN to tie taxable income back to you. You must provide a legit name, address, and DOB to all the poker sites I'm aware of, which is generally enough info to legally ID you. Just sayin', be careful with what you assume.
Originally Posted by RichKo
Damn those taxes. What I find strange is...I had a customer who used to be a chef on a boat (can't remember if it was a cruise ship or personal ship), anyways he cleared over 100K a year and since he was on international waters he paid no taxes. No site is based in the US (that I know of) so wouldn't that be the same thing?? Not that it matters to me cause I suck anyway.lol
If you are a US citizen or legal resident, your income is taxable no matter where you earn it, even overseas. The thing is, in most cases it's up to you to report it, otherwise the IRS cannot easily find out about it since overseas institutions are not require to report it themselves.
That said, I would strongly discourage people from contemplating tax fraud of any kind -- particularly where larger sums are concerned (like a 100K/yr salary) -- because the IRS can also be very resourceful. Not only that, but other people with an ax to grind could report you. Banks could get audited. There are a number of ways the IRS could "find out" without direct reporting, however unlikely it may be. If you're going to take a shot at getting away with it, I would certainly keep it to myself and not be posting about doing so on a public internet forum. The evidence could be used against you, and all that.