Fishhead,
WHen banks used to give out free toasters for opening an account, I doubt anyone paid taxes on that. So why should bonus oney be considered gambling income. Seems to me its no different than when one of these timeshares give you a free gift for just listening to thier pitch.
I guess more to the point, if the IRS calls you on it, can you reasonably defend yourself for not including bonus money togtehr with the rest og your gambling income.
WHen banks used to give out free toasters for opening an account, I doubt anyone paid taxes on that. So why should bonus oney be considered gambling income. Seems to me its no different than when one of these timeshares give you a free gift for just listening to thier pitch.
I guess more to the point, if the IRS calls you on it, can you reasonably defend yourself for not including bonus money togtehr with the rest og your gambling income.
buddyboy-
I will tell you this.
You DO NOT have to report the value of things given to you such as toasters, televisions, etc.,etc. that say your bank gives you for signing up for an account.
Having said that, the same as been PROVEN to be the same for any gifts, not money and not gifts won by promos, that a casino is willing to give you!!
I say proven, because a few years ago a gentlemen won a court case after he was declared that he DID NOT have to pay taxes on the value of a car that a casino GAVE him just for playing at their casino.
Forget the casino, but it may have been the MGM in Vegas........dont recall.
I will tell you this.
You DO NOT have to report the value of things given to you such as toasters, televisions, etc.,etc. that say your bank gives you for signing up for an account.
Having said that, the same as been PROVEN to be the same for any gifts, not money and not gifts won by promos, that a casino is willing to give you!!
I say proven, because a few years ago a gentlemen won a court case after he was declared that he DID NOT have to pay taxes on the value of a car that a casino GAVE him just for playing at their casino.
Forget the casino, but it may have been the MGM in Vegas........dont recall.
So Fishhead, if I choose to view bonus money as a gift, and therefore not pay taxes on it, and I get audited, I would actually have a leg to stand on.
And if I admit to the IRS that I engage in offshoresportsbetting, I don't believe they have the right to pass that information on to any other law enforcement agency
And if I admit to the IRS that I engage in offshoresportsbetting, I don't believe they have the right to pass that information on to any other law enforcement agency
how are you screwed for life, pay a few penalties, and what not. most people have no idea that someting was not reported on taxes. i for years did not bother, but now, i think i am going too. i now *know* that I am suppose too, so in return, i will. back then i had no idea. yeah, the IRS can get you gor having no idea, but i dont believe it would ruin your life.
i really dont think it would be worth thier time to chase after a gambler who has made a few K, there are much bigger fish in the sea<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by theswami:
After seeing my wife's aunt deal with the IRS, I can tell you that you DO NOT want these guys on your ass.
Pit bulls have NOTHING on IRS agents!!!
You can make an argument for most things tax-related but if you lose, forget it, you are screwed for life.<HR></BLOCKQUOTE>
i really dont think it would be worth thier time to chase after a gambler who has made a few K, there are much bigger fish in the sea<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by theswami:
After seeing my wife's aunt deal with the IRS, I can tell you that you DO NOT want these guys on your ass.
Pit bulls have NOTHING on IRS agents!!!
You can make an argument for most things tax-related but if you lose, forget it, you are screwed for life.<HR></BLOCKQUOTE>
A gift requires "donative intent" by the person/entity giving it. Obviously that does not exist here. It's part of a transaction to fund your account.
This is not that different from a tax case involving a casino employee (blackjack or roulette dealer) who did not report tips given him by gamblers on the theory that they were gifts from appreciative gamblers, not earned income. The IRS contended that they were earned income and had to be reported and the IRS won in court.
This is not that different from a tax case involving a casino employee (blackjack or roulette dealer) who did not report tips given him by gamblers on the theory that they were gifts from appreciative gamblers, not earned income. The IRS contended that they were earned income and had to be reported and the IRS won in court.
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by bigbet1234:
how are you screwed for life, pay a few penalties, and what not. most people have no idea that someting was not reported on taxes. i for years did not bother, but now, i think i am going too. i now *know* that I am suppose too, so in return, i will. back then i had no idea. yeah, the IRS can get you gor having no idea, but i dont believe it would ruin your life.
i really dont think it would be worth thier time to chase after a gambler who has made a few K, there are much bigger fish in the sea<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by theswami:
After seeing my wife's aunt deal with the IRS, I can tell you that you DO NOT want these guys on your ass.
Pit bulls have NOTHING on IRS agents!!!
You can make an argument for most things tax-related but if you lose, forget it, you are screwed for life.<HR></BLOCKQUOTE><HR></BLOCKQUOTE>
The way I used "screwed for life" was a bit of hyperbole. MY understanding from her is that as a result of not being able to adequately defend her position and the IRS winning, she is closely monitored and her chances of future audit has increased.
You are correct about the penalties and interest, those things handle the tax year for which you are being audited. I was trying to point out that once you get "caught" knowingly or unknowingly, she told me that all future returns should be filed with the most conservative view of the tax law.
how are you screwed for life, pay a few penalties, and what not. most people have no idea that someting was not reported on taxes. i for years did not bother, but now, i think i am going too. i now *know* that I am suppose too, so in return, i will. back then i had no idea. yeah, the IRS can get you gor having no idea, but i dont believe it would ruin your life.
i really dont think it would be worth thier time to chase after a gambler who has made a few K, there are much bigger fish in the sea<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by theswami:
After seeing my wife's aunt deal with the IRS, I can tell you that you DO NOT want these guys on your ass.
Pit bulls have NOTHING on IRS agents!!!
You can make an argument for most things tax-related but if you lose, forget it, you are screwed for life.<HR></BLOCKQUOTE><HR></BLOCKQUOTE>
The way I used "screwed for life" was a bit of hyperbole. MY understanding from her is that as a result of not being able to adequately defend her position and the IRS winning, she is closely monitored and her chances of future audit has increased.
You are correct about the penalties and interest, those things handle the tax year for which you are being audited. I was trying to point out that once you get "caught" knowingly or unknowingly, she told me that all future returns should be filed with the most conservative view of the tax law.
King of the ROad,
In my mind, the bonus is no different then the guy who was given a car by one of the casino's in appreication for all the action he gave them. Or more commonaly, no different than the toasters banks used to give out, or the tv sets that timeshare places give out.
Some sportsbooks give out free money to entioce you to give them a try. If you send them money and win, then you should pay money on the winnings, but it seems to me, an arguement exsists that the bonus could be viewed as a gift. If nothing else, and certainly does not have to be lumped together wither gambling winings.
In my mind, and I could be way off, what is most important is that the IRS not accuse you of intentionally filing a false return. SO maybe I'm poushing the enveleope, maybe I'm not. But if there is room to argue that the boinus money is a gift, why not go for it. And if the irs tells me I'm wrong, I'll pay the taxes with the interest. I'm willing to risk being hit with interest charges, just don't want to go to jail
In my mind, the bonus is no different then the guy who was given a car by one of the casino's in appreication for all the action he gave them. Or more commonaly, no different than the toasters banks used to give out, or the tv sets that timeshare places give out.
Some sportsbooks give out free money to entioce you to give them a try. If you send them money and win, then you should pay money on the winnings, but it seems to me, an arguement exsists that the bonus could be viewed as a gift. If nothing else, and certainly does not have to be lumped together wither gambling winings.
In my mind, and I could be way off, what is most important is that the IRS not accuse you of intentionally filing a false return. SO maybe I'm poushing the enveleope, maybe I'm not. But if there is room to argue that the boinus money is a gift, why not go for it. And if the irs tells me I'm wrong, I'll pay the taxes with the interest. I'm willing to risk being hit with interest charges, just don't want to go to jail
If you file a 1040 the chances of being audited are miniscule. You have to really be claiming some outrageous stuff. 1099s are what they look for.
Bonus money is not a gift. Claim it as that if you want, but it is gambling income. No gray area there.
Remember that on tax audits it is almost like being guilty until proven innocent. If they see an extra 10 dimes cashed against your checking account you can't just say, "prove it," when they tell you that should be earned income. You have to prove it wasn't earned income.
Fish is right that the odds of getting audited are quite low. Remember the IRS is the most fiscally efficient arm of the government and they aren't going to waste an IRS agent on $1,000 in possible tax revenue. They go after the big boys.
Bonus money is not a gift. Claim it as that if you want, but it is gambling income. No gray area there.
Remember that on tax audits it is almost like being guilty until proven innocent. If they see an extra 10 dimes cashed against your checking account you can't just say, "prove it," when they tell you that should be earned income. You have to prove it wasn't earned income.
Fish is right that the odds of getting audited are quite low. Remember the IRS is the most fiscally efficient arm of the government and they aren't going to waste an IRS agent on $1,000 in possible tax revenue. They go after the big boys.
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> And if I admit to the IRS that I engage in offshoresportsbetting, I don't believe they have the right to pass that information on to any other law enforcement agency <HR></BLOCKQUOTE>
Tell that to the guy who got charged locally in Dakota based on an IRS tip. And he didn't even book, was just an offshore player that paid his taxes.
Tell that to the guy who got charged locally in Dakota based on an IRS tip. And he didn't even book, was just an offshore player that paid his taxes.
