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Originally Posted by beeschnuts
I talked to my accoutant about this yesterday. It seems most people in this thread are listing pokerstars address as the address of the financial institution and poker screen names as the account number. My account thinks that Pokerstars doesn't actually hold our money but they have a bank that does and that we are supposed to list the bank and actual bank account number. Of course, it seems like Pokerstars is reluctant to give out this information so I'm not sure what to do. Did everyone list Pokerstars (or whatever poker site they play on) as the financial institution or did anyone put down an actual bank that the poker sites use?
The money is being held by (using your example) PokerStars. PokerStars is responsible for the money. It's their address that counts.
If you have money in a foreign bank, say the Royal Bank of Scotland, that money is rarely at the bank. Just like an American bank, RBS will loan money and otherwise try to make more on interest than the interest they pay you.
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Also, maybe Russ can answer this. You mentioned previously that if all your accounts add up to over 10k, then u have to list all accounts, even if one of them has only 1$ in it. My question is, what if i had over 10k in a pokerstars account, and i have other accounts such as a full tilt account, but my tilt account balance is 0$ and i did not use it at all in 08- would i still have to list my full tilt account?
Only an active account needs to be reported. A zero-balance account, assuming it never had money in it during 2008, does not need to be reported.
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Originally Posted by pianospike
How in the heck could this possibly be interpreted to include online poker sites:
Q.What is a financial account?
A. A “financial account” includes any bank, securities, securities derivatives or other financial instruments accounts. The term includes any savings, demand, checking, deposit, or any other account maintained with a financial institution or other person engaged in the business of a financial institution. Individual bonds, notes, or stock certificates held by the filer are not a financial account nor is an unsecured loan to a foreign trade or business that is not a financial institution.
http://www.irs.gov/businesses/small/...210249,00.html
Two reasons. First, the Treasury and IRS are judge and jury. They've said they are. They get to interpret the law that Congress made. If you don't report it, you may be subject to a fine and penalty. It's pretty clear that after the limited foreign account amnesty is over (that's why the extension deadline is September 23rd) that the IRS will be cracking down on this. If you get fined your recourse then would be to take it to a court. It takes a lot of money to fight the government.
Second, US casinos are classified as financial institutions under various laws. I've felt for some time that it was logical to conclude that foreign casinos are just as much financial institutions as US casinos. (Now, it
is reasonable to wonder why an American casino is considered a financial institution; you can blame money laundering laws and the Mob's control of Vegas in the 1960s for that.) Finally, now that the sites are offering echecks and edeposits--services associated with banking--the sites begin to even look a little like financial institutions.
-- Russ Fox