The Audits are Coming
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This morning I saw a post on pocketfives where someone claims they just received an audit notice from the IRS. They say they did everything they were supposed to do (filed quarterly estimates and reported the income) and they still got an audit notice from the IRS.
A year ago I realized that a major problem was brewing for some American poker players. They were playing online, winning consistently, cashing out regularly, and not planning to report the income on their Federal income tax. Many of them had no idea they were even required to report the income and pay taxes on it.
If you play live poker and keep your cash transactions below $3,000, you could possibly fly under the IRS’s radar. But if you play online poker, all of your deposits and withdrawls are recorded for posterity by your bank. If the IRS goes looking for you, and you have failed to report significant income for a significant period, you’re as good as nailed. They call up your bank records, figure out what’s going on, and send you an audit notice.
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Tags: cpa, gamblers-guide-to-taxes, gamett-and-king, irs, lower-your-taxes-big-time, neteller, poker, poker-income, pokerstars, sandy-bodkin, tax-audit, taxes, walter-lewis
