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General Poker
Income Tax on Poker Winnings
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[QUOTE="dmorris68, post: 1281960, member: 40397"] 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 [U]but[/U] 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 [U]have[/U] 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. 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. ;) [/QUOTE]
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