Quote:
Originally Posted by ThatGuy4444
Seeing as how US banks are not allowed to cash checks specifically from online gambling, yet all gambling income must be reported to the IRS (with the potential for an audit), do yall still report online gambling income on your yearly taxes? Wouldnt that throw up red flags to the IRS or Gov for illegal activity? How do people avoid scrutiny from the IRS, etc? Im sure there is a way to do it all by the books and legal, I just dont know it. Or are we now in a constant grey area? Thanks.
It is not illegal to win money playing poker at a casino or online.
It is illegal to evade paying your taxes.
There is no grey area here.
The fact that US banks do not want to be involved with cashing poker checks because of UIGEA is irrelevant to you or your legal responsibility to pay federal taxes on any money you earn.
Just pay your taxes and you dont have to worry about "avoiding scrutiny".
Just as a side, to be honest, even if you were selling heroin, the IRS couldnt care less, they want their money if you are making it.