I'm not sure if this is the right place for this question-seemed like the best choice but if not, mods feel free to move.

Did some searching on this and found no definitive answer, hoping someone on here can clear it up for me.

Recently won a bunch on Lock Poker and looking to take some off. I'm trying to cash out about $12,500.

My question is, if I get this in one check, will it be reported to the IRS by the bank I deposit it in where I would be forced to pay taxes on it? If so, is there a way to break up the payments so it won't be reported?

Thanks, sorry if this is out there already.

Mark

It won't be reported by your bank, but it is your legal responsibility to claim it and pay taxes on it.

So, you're asking us for help on how to evade taxes which is a felony?

All bank transactions over $500 (or somewhere close?) are reported. Breaking up payments to avoid reporting is very illegal and will get caught easily. You won't be "forced" to pay taxes in the sense that the bank won't withhold a portion for taxes, but you are legally obligated to pay your taxes. It's fairly likely that if you don't, you will get caught and screwed over big time.

Cliffs: Pay your taxes.

The *cash* threshold amount in which banks are required to report to the Feds is $6,000. Any transaction over $6k is reported, this policy/law has been in effect for several years and was a byproduct of laundering drug money.

Making money is fairly easy compared to keeping it. Some general business knowledge and accounting will go a long way to help you. If you antisipate more poker earnings probably the best thing you could do is invest a few bucks w/ a competent accountant/cpa/tax advisor.

the transaction will be "reported" because of standard AML (anti money laundering) procedures for financial institutions, but not to the IRS.
contrary to what t_roy said, i highly doubt this gets stuck in the IRS screen and they decide to target you. This is what, a $3k tax bill? The liklihood of an IRS special agent showing up is actually quite slim - they have bigger and better things to do with their time. If you get audited, they will see this, you'll have to answer for it, etc. But don't be stupid. File your taxes with an accountant who knows your situation.
not sweat worthy.

+1