So after bitching about ignition I switched to ACR, I've cashed for a few thousand over the last few months. What I'm wondering, has anyone be audited and had to claim online wins?
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So after bitching about ignition I switched to ACR, I've cashed for a few thousand over the last few months. What I'm wondering, has anyone be audited and had to claim online wins?
Ok so your up 2-3k roughly.. First off ACR sure as hell isn't reporting your winnings they are an offshore grey market site.. Secondly if you've pulled some of your winnings its highly unlike a CTR has been filed since its well below threshold at this point.. (Yes some banks will report for transactions as low as 3-5k depending especially if you normally don't deposit that much).. If you have w/d even through coinbase or similar site BTCs I still wouldn't worry the IRS reported was after folks who had larger transaction sizes vs smaller incoming and/or outgoing BTC transactions.. So truthfully at this point I wouldn't worry at all.. Now if you manage to bink a big win and pull a large sum off then all bets are off and you probably would have to report winnings then but remember gambling losses are legal deductions against any and all winnings..
First, please understand I am not a tax professional, and am only giving this advice from my general knowledge of the situation.Quote:
Originally Posted by Drawingdead
You will almost surely not be audited for a few thousand worth of cashouts.
Even if you are, recall the fact that you can deduct gambling losses from gambling wins in the same calendar year, even if not filing as a professional gambler.
For example, if you cashed out $4k from ACR, and then went to the Bellagio poker room and lost $5k in a cash game (in the same year), and if you played no other poker that year (or broke even when you did), you would legally owe NO TAXES on the $4k cashout.
How would you prove the $5k loss at the Bellagio? You wouldn't have to. You would simply need to tell them when it occurred, what game you played, and what your exact loss was. You would not be able to prove it, and the burden would be on the IRS to disprove it. These details would only come up during an audit If you do not have any W-2G or 1099 forms due to gambling, you don't need to list an overall gambling loss (or breakeven year) on your tax return, as there was no income.
The IRS rarely audits small or medium gambling wins. They tend to go for the bigger targets, especially given that the small/medium targets can simply say, "I lost it back at the casino" and it's hard for the IRS to disprove.
Once you start getting around $10k, especially if you withdraw in big sums....then maybe start pursuing a tax strat. Otherwise, I have never heard of a case where the IRS or State govt came after a ship for less than a $5k bink, and you should be ok.
For me it will be easy..
Just claim lottery (sweepstakes) winning,s..
let's say you filed you return in April 2018 and left off the winnings
the IRS will know about the income only if a 1099 is issued...if so, then they will send you a proposed change of your return for that year and request additional tax--no audit requiring a visit with them...you then file an amended return and pay the tax and penalty...IRS change notices are usually issued in November each year.
the 1099 is supposed to be to you by January 31 of 2018, but a lot of times it is later than that or sent to the wrong address...so the risk is a 1099 gets to the IRS but not you, you don't report and the IRS sends you a notice of proposed change...for no charge you can request from the IRS a listing of all your 1099's/W2's/other tax reporting sent to them...that way you learn if you have missed anything...the IRS uses that listing to review your tax return for missed items (they call it matching your income and expense to your return)...the listings become available to the public in late August each year...but you must pay your tax by April 15...so what you can do is file your return without the winnings (or go on extension thus moving you filing deadline back to 10/15--note the extension is for filing only, you must still have paid by April 15 over 90% of your ultimate tax for the year)...then in early September call the IRS, get a "transcript of your income and expense" and see if the 1099 is included...then amend your return or file