IRS to poker winners: Pay up!
 

WASHINGTON - They're not bluffing: Tax collectors will start requiring poker tournaments to report the winners' take.

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Casinos and other sponsors of poker tournaments will be required to report winnings of more than $5,000 to the Internal Revenue Service beginning March 4, 2008, the tax agency said Friday.
Sponsors who meet the reporting requirement won't need to withhold federal income tax at the end of a tournament, it said.

If a sponsor does not report winnings, it is responsible for withholding the taxes and sending the money to the IRS, normally 25 percent of the amount subject to reporting.

The IRS said poker tournament winners must provide their taxpayer identification number, usually a Social Security number, to the sponsor. If the winner fails to do so, the sponsor must withhold federal income at a rate of 28 percent.

Casinos and sponsors of tournaments completed before March 4 next year will not be required to report winnings to the IRS or withhold tax.

By law, the winners already must report poker earnings on their federal income tax returns.

Full story here.

So US citizens will have to pay tax on an activity that their Government outlawed earlier this year?

that sucks lol... damn got to pay for the war somehow.

Yeah, I was gonna say.... how exactly does the IRS expect to receive taxes on an illegal activity?

Of course there will be no provision for claming losses.

These are casino tournaments, not online tourneys.

Ah, ok, working on that also see http://www.statisticmanager.com/tournament/

Could be quite a hit in Asia, I hope :pimp

Perhaps once they see how profitable it is, they will legalize online poker.

There's a whole bunch of legal poker options in the States, just not online. :2 cents:

$3.50 tax per gram of marijuana in N.C.
$50.00 tax for a gram of cocaine.
I bet you there are a few tax cheats on this board :pimp
Here's the tax form
http://www.dor.state.nc.us/downloads/BD-1.pdf

they outlawed internet gambling only

Playing poker online is NOT illegal...funding accounts is.

the UIGEA addresses the funding of accounts, and nothing else..and to be a bit more specific...it is merely for financial institutions.

There are however a few states where it is illegal to play poker on line...Washington, and Nevada are two I can think of right off the top of my head.

In other news, Party Gaming is trying to sell Party Poker and MGM Mirage is interested as is Harrah's. If one of these companies buys Party, then you may see a bigger lobbying push to get one of these bills like the IMGEA through and all is right with the world.

I've posted the link before and I've been a member since the beginning...but if you play poker on line, and would like to make sure you can continue to play on line then join the PPA

http://www.pokerplayersalliance.org/

Nevada!? This was the original 'gambling friendly' state....

There are 11 states where it has always been illegal to gamble online and Nevada has been one.

The other 10 are Illinois, Indiana, Louisiana, Michigan, New Jersey, New York, Oregon, South Dakota, Washington, and Wisconsin.

we have legal casinos in the US.

Yes, sorry, I was refering to online poker.

Apparently even the Diplomat resort in Miami resort where the Internext is held, is gearing up to be transformed into a pokie palace...

Yea, imagine that...

Yeah. Only when there is an advantage FOR Nevada.

:2 cents:

It never ceases to amaze me how our government obesesses about the United States being the "free-est" country on the planet...yet anything that is linked to some sort of fun or pleasure is illegal or immoral by government standards.

so...basically...you are "free" to do what you want, so long as we say it is okay. How hypocritical is that?

can you deduct your losses from your income ???


After all, the money that hits the table has already been taxed as income ....

Have to pay for upcoming OPERATION LOOSENUP IRAN ...

http://www.pokerplayernewspaper.com/...le.php?id=1894

some answers here.

most of you may know this but those who do not, just set up a VPN between yourself in the Untied States and an ISP in a country such as Canada (where you truly are free :thumbsup ) to play online poker :winkwink:

sounds like a good idea

only a matter of time

Wait ... these funds have already been taxed, be it by US or non US citizens ... personal money has always already been taxed in either wages or some other tax ...

so the cunts at the IRS wanna tax funds that have been taxed already, AND funds that are won via an illegal activity.

Fuck them assholes. I'd tell them to their faces.

Lucky for me, I don't play gambling games and I also don't live in the USA.

lol good point..

If the IRS would actually close the loop holes in corporate tax havens they would make 1000 x's more money they kicking the shit out of the piss ants for a few hundred or grand.

Typical.