According to an IRS Bulletin, beginning March 4, 2008 the IRS will require tournament directors to withhold taxes from poker tournament winners who win in excess of $5,000. It requires this withholding at the third-lowest tax rate which is currently 25 percent. It’s not entirely clear whether this withholding applies to any prize greater than [...]

I’ve been something of a broken record in the past about the fact(s) that: Gambling income is taxable in the US Lots of people aren’t declaring poker income on their returns The transactions are all logged, so there’s no plausible deniability if they look into your stuff They will start looking into online gambling transactions, [...]

I can’t say I’m very surprised to hear it, but today it became official. Neteller is rolling over to save itself from the headache and expense of a fight with the DOJ. Neteller issued a press release today. The lowlights are the following: The discussions between [Neteller's] legal advisers and the USAO are ongoing. [Neteller] [...]

At the risk of beating a dead horse, I just wanted to share a little of my morning paranoia. So I know that despite my protestations, a number of online poker players still don’t plan to report their play on their taxes. I frankly think that it’s an enormous risk to take, and I fully [...]

Poker players are abuzz lately with the news that two Neteller execs were arrested on money laundering charges. The feds’ position: “Internet gambling is a multibillion-dollar industry,” Mark Mershon, assistant director-in-charge of the New York FBI office, said in a statement. “A significant portion of that is the illegal handling of Americans’ bets with offshore [...]

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 [...]