IRS question

[lakersmetsjets]

Do any of you report any of your winnings to IRS? What are the implications with offshore winnings? I am about to deposit one of the fed-ex checks from thegreek (large amount) in my bank account and wanted to get your thoughts on how you guys deal with winnings.

[Dr. Jack]

Welcome to the mall.

This is really a question for your accountant. It is my belief (others will disagree) with current conditions the only liability a bettor can have is tax evasion. With that in mind I recommend you report and pay taxes if living in the US

[slipperypete]

maybe report it as "other income" and not state that it was gambling winnings, maybe less taxes paid that way? - if i'm wrong excuse me i don't have to pay taxes on winnings in Canada :P

[tw burke]

report it but you can offset and claim you lost same amount
lottery--slots etc
ive done it--no problem

[lakersmetsjets]

Thanks guys..I especially liked wtburke's response. Keep the suggestions coming.

[NY Mane]

Guys, I work in the auditing/accounting/financial world and I say DO NOT REPORT ANY WINNINGS! You are creating a red flag where there does not need to be one. Auditors make random selections off of red flags. Do you want to be on that potential list for an audit because your tax return does not pass the sniff test when compared to other year's returns?

Lower the withdrawals from your offshore and cash them. Your bank will make you sign a 1099 and that goes directly to the IRS if you are cashing large checks (I forget the amount but check www.irs.gov). I do not work for the IRS but I have worked for an accounting firm, a plus billion dollar private corporation and a multi-national consulting firm.

I don't sign tax returns but I advise friends and family to never report winnings or offset losses. You are creating a nightmare that can be avoided. Put it this way, if a stranger asked me to do their tax return and they insisted on reporting wins I would shred the return and tell them to go elsewhere. I don't care if they offered me $750 to do their return, I wouldn't get caught up in that. The IRS made my old neighbor's life a living hell. Don't do it!

[dkp]

I have reported only when I had to, i.e. a slot winner or a big payoff at the track. And, even then, I did like wtburke and offset winnings with losses.

Yep, I was one of those guys you saw picking up losing tickets off the ground......

[NY Mane]

That's a different story. You are forced to sign a 1099 and that is categorized as an isolated incident. But if you claim winnings on your own you are creating a major red flag. MAJOR! I can't stress enough how bad (potential) your life will be when the IRS is knocking on your door and asking questions.

You are presumed guilty until proven innocent when dealing with the IRS. Jim Trafficant, politician, spoke at our Key Club when I was in junior high. He talked about his IRS problems and he did not sugar coat at all.

[lakersmetsjets]

Thanks NY Mane. Is a money transfer (western union) of large sums(2 G's+) considered a red flag? I'm assuming most of you withdraw via checks.

[NY Mane]

2 g's is nothing on the map....I think the 1099 and red flags appear when it is above $9k...don't quote me...check the IRS site.

[NY Mane]

hojimoe is correct. No taxes on gambling winnings in Canada.

If a Canadian wins big at a US casino they have to fill out a 1099 but they can re-claim that tax taken out when they do their taxes later.

[skippy]

Originally Posted by lakersmetsjets

Thanks NY Mane. Is a money transfer (western union) of large sums(2 G's+) considered a red flag? I'm assuming most of you withdraw via checks.

The minimum is $10K.

Just make sure you don't get near that amount......not even $9,990
That is why you never cash all your casino chips at once if it totals more than $10K.....unless you are Charles Barkley.

Take your money out over a period of time.....and vary it.
Don't take money out every 15th or at month's end.
Vary it so that there is NO establish pattern and vary the amount as well.

[t r i p l e X 71]

what happens if we've had withdrawls at the 10k area? shall i report? i've had 2 10k withdrawls this past year, not really sure what i was thinking -- but i think i may have to claim just to be safe.

[skippy]

Originally Posted by t r i p l e X 71

what happens if we've had withdrawls at the 10k area? shall i report? i've had 2 10k withdrawls this past year, not really sure what i was thinking -- but i think i may have to claim just to be safe.

Did you exceed the $10K or not???

And did you have to sign any forms??

[t r i p l e X 71]

no it was 10k on the dot -- and it was from betjam -- and it went directly into my checking account in the form of an echeck, so no forms were signed.