Agent Donovan was quoted as saying "Some customers may get their money back." Now an accounting team has been called into the situation to analize things. They will probably find out who's been declaring their Neteller activity on their taxes and who hasn't. I'm thinking that those who have been declaring Neteller payouts on their taxes are the ones Donovan may have been referring to and might get paid, while those who have been stiffing the IRS will have the seized funds applied towards their penalties and tax debt to the IRS.
You are crazy. I could care less as I pay my taxes, but forensic accounting has nothing to do with the IRS.
The IRS could pour through every bank acct in the country but they do not due to costs. Pouring through 500,000 Neteller accounts and figuring out what people owe would take years and years... You have wins, losses, P2P, reups, withdrawals, payments for non gambling, etc etc... Then you have to compare all that with millions of returns... Many of which just report a number and provide no records... Simply not worth it (Most people lose gambling and do so substantially - the IRS knows this)
Forensic accounting has to do with analyzing the total numbers and figuring out a reasonable fine for the court.
http://www.forensicaccounting.com/one.htm#start
The IRS could pour through every bank acct in the country but they do not due to costs. Pouring through 500,000 Neteller accounts and figuring out what people owe would take years and years... You have wins, losses, P2P, reups, withdrawals, payments for non gambling, etc etc... Then you have to compare all that with millions of returns... Many of which just report a number and provide no records... Simply not worth it (Most people lose gambling and do so substantially - the IRS knows this)
Forensic accounting has to do with analyzing the total numbers and figuring out a reasonable fine for the court.
http://www.forensicaccounting.com/one.htm#start
sean1 said:
If pouring through records and figuring out what people owe takes "years and years" and is "simply not worth it", then why the f**k do they AUDIT people??? Call me crazy, I guess. And I guess those computors can't pull your info up in two seconds.
They could get a simple net payout on Neteller account holders and match it against tax records to see if they're in the ball park. If someone got paid $80 dimes from Neteller in a given year for example, but only declared $35 dimes income for instance, they could be flagged for an audit. The case then gets turned over to an IRS worker. Why is that an impossible scenario?
Could they do it? Sure they could.
Audit systems are in place though. This would require new programming and who knows what kind of data Neteller is going to turn over... Could just be names, could be numbers, could be on paper, could be digital, who knows.
But anyways, even if they did pour through all 500,000 accts or so, they are gonna find less than .1% of people are cumatively up gambling. That is the disincentive.
Sean
Audit systems are in place though. This would require new programming and who knows what kind of data Neteller is going to turn over... Could just be names, could be numbers, could be on paper, could be digital, who knows.
But anyways, even if they did pour through all 500,000 accts or so, they are gonna find less than .1% of people are cumatively up gambling. That is the disincentive.
Sean
sean1 said:
Oh, they COULD. Glad to know I'm not crazy.
As far as gambling taxes go, one doesn't have to be up cumatively for their career, just for a given year. If you win $50 k one year and lose $90 K the next, you still owe on the $50 k. If someone has had one winning year out of the last decade, they still owe on the one winning year.
BTW, I define winnings as money COLLECTED. The $7000 I had in MVPsportsbook when it shut down was stiffed, so I actually didn't win it. Winnings for tax purposes are strictly defined by money collected during a year minus money paid out during the year (and also minus expenses incurred such as cumputors and internet bills)...not the culmative figures of a day-to-day gambling journal.
acosta-
ive heard many poeple say that but havent seen it in any tax law
Say for example you win the lottery 50 k a ayear for 20 years- I dont think you pay taxes on the million the first year. If neteller ends up stiffing someone for 50 k then how did they actually win 50 k- it may as well have been play chips.
ive heard many poeple say that but havent seen it in any tax law
Say for example you win the lottery 50 k a ayear for 20 years- I dont think you pay taxes on the million the first year. If neteller ends up stiffing someone for 50 k then how did they actually win 50 k- it may as well have been play chips.
tkf18ny said:
That's just it...reality doesn't work that way. Money isn't "won" until it's collected. Also, the only way anyone could know your day-to-day figures is by self-incrimination. No one is ever going to know what I bet last night at Olympic or Bodog unless I pull it up for them.
All you have to do to cover your ass on taxes is account for anything that left a paper trail. Everything else, including phantom winnings, resides in the world of theory and has no practical application in the real world.
TKF18NY...I keep getting e-mails about how I've won some lottery somewhere in the UK. I'm winning a lottery there every two or three days, somehow. Do I pay taxes on that too?
When you get paid in installments be it a lottery or when you make a loan to someone, the taxes aren't due until you receive the money. Having an account at a online casino is similar to having money in the bank, it's there for you. If the bank or casino folds, it then becomes an uncollectable debt.
If you had the chance to withdraw the money at some point before the book folded with your money then you owe taxes on that amount even though you never requested that withdraw. Talk to a CPA or anyone else in the industry and they will tell you this. The IRS will also tell you this.
Anti-Liberal you owe taxes on that $7000 whether you think you do or not. The IRS would laugh at your definition and throw ya in Butt Rape Prison.
-Brendan
Anti-Liberal you owe taxes on that $7000 whether you think you do or not. The IRS would laugh at your definition and throw ya in Butt Rape Prison.
-Brendan
