Quote:
Originally Posted by ChipLeeder
Russ,
I believe that my online accounts at poker web sites are "transfer service" accounts which would not be subject to foreign bank account reporting. What has changed or been published (beyond an e-mail) that clarifies this 100%.
Thanks,
Chip
100% clarification doesn't exist on this. The only way to know for sure is to not report an online gambling account, be arrested, tried, and find out if you're found guilty or not guilty. (There's an alternative path, too: civil fines. You'd have to appeal those administratively, and eventually to the courts.)
Casinos in the United States fall under the same rules as banks for numerous IRS and Treasury regulations. That's a fact. I've felt for some time that this ruling (that foreign/online casinos are financial institutions) was inevitable. They make direct deposits into individuals' bank accounts. They take money directly from players' bank accounts. They handle lots of money. Players can transfer money to other players. If it looks like a duck, walks like a duck,....
As far as transfer sites, just remember that Neteller (a transfer site) is absolutely a foreign financial institution.
You have a choice. You can report the online gambling sites. Or you can skip it. It's not likely that by not reporting the sites you will get in trouble. However, if you are chosen by the IRS/Treasury to be a test case, you will have to spend lots of money defending yourself, your life will be disrupted for a long period of time (ask one of the criminal defense attorneys who posts here about fighting the US Government), and you could find yourself in prison or out $100,000. It's your decision on what you do, but the letter of the law is clear and the Treasury's/IRS's opinion on the issue is also clear.
-- Russ Fox