Quote:
Originally Posted by jennaecks
I got a similar response. I plan on sending a copy of the email and a letter explaining the accounts I am reporting are online poker accounts and that the sites won't provide any specific information.
Im a bit late on this as I didnt know there was a thread on it.
A few days ago my CPA (who does like no gambling stuff at all) caught this and advised me to file before tomorrow. Its a shame more CPAs didnt catch this and advise the same. Its better to file (which cannot hurt you) than to be sorry later. As to the fields people are unsure about, my CPA filled them out as unknown, so if you do not have the addresses I wouldnt worry, something is better than nothing. For account number or other designation he used my "screen name" and for financial institution the poker site was listed, and for account type other was marked and then listed as Poker Account. Again, something is better than nothing and at least you got them all the information you could before the deadline.
Quite a few of my poker friends have been audited lately, so I wouldnt play around with these issues. And just because you havent been yet doesnt meant you are "safe", keep in mind that the IRS has 7 YEARS to do so! Keep your records!!! I have connections in government and have a great CPA and lawyer....all of which have warned of the crack down coming for any area they can squeeze money from...gambling being one of these places. They are aware that gamblers keep very poor records, therefore it is easy for them to extract maximum money, fines, and penalties.
Just an example, if you can follow my nonsense rambling, lets say you win a million in a big tounry OR high stakes data base says you are up this BUT you only claimed 300k on your taxes and were 100% honest that 300k was your profit. Now you get audited, and claim TRUTHFULLY that people had pieces of you and you paid them (in CASH as most gamblers do). They dont care, you have to prove this to them OR you owe the tax on the other 700k that you cannot show any record of.....EASY pickenings for the IRS no?? I would think twice before giving my friends 100k in cash without something in writing because if they arent honest on their taxes and you need something saying you gave them that money how easy do you think it will be?? You are left holding the bag. Dont get yourself into these situations people. Keep good records and BE HONEST. And send in any forms (LIKE THE ONE IN THIS TREAD)....they are much more likely to work with someone who has been forthcoming with information and has attempted to do everything right as opposed to someone they feel has been sneaking money around.
Over the years we (my family) has dealt with the IRS on multiple occasions, ranging from estates to audits. The burden of proving anything is on you, and negligence or lack of knowledge is a laughable excuse to an agent. They will get every penny they can due to lack of your record keeping or just plain laziness in filing, ESPECIALLY in this economy!!!
If your CPA doesnt think this is important, or says its not clear etc. etc. (like some in this thread), or worse yet doesnt even KNOW about this....Id advise you to get a new CPA asap! There are very few citizens on the winning end vs the government, let alone the IRS, in taxing matters. Even if you have a valid case/reason, the cost and time alone is unreal. Dont put yourself in that position in the first place.
**I only got through a few pages of this so if this stuff has been clarified already I am sorry. A friend linked me to this after I warned him about this needing to be filed before tomorrow.