Quote:
Originally Posted by dboy23
interesting...
"What is a financial account?
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."
This is from http://www.irs.gov/businesses/small/...148845,00.html
I absolutely believe an online poker site acct could be considered an unsecured loan to a foreign business.
Any thoughts on this?
Yeah. If the sites hold your money in a segregated player trust/escrow account, then your deposit cannot possibly be considered a loan, because the sites would be holding it for your benefit.
If, on the other hand, the sites deposit the money to, say, their general operating account, and commingle your funds with their profits from the rake, then you would have an argument that, in my view, would, at best, barely pass the straight-face test.
I don't like the loan argument because there is no note, there is no stated interest rate charged for their use of your money, there is no repayment period other than "on demand," and because at no time do they have exclusive use of your money. Think about it--if a bank loans you $200k to buy a house, they do not have access to all or any part of that money. That is not true of your money in your poker account.
The better argument against filing the FBAR is that the sites are not financial institutions. The argument that they are is outrageously intellectually dishonest and asinine. BUT: that wouldn't stop the IRS from asserting it, and, therefore, I am with Russ on filing the FBAR out of an abundance of caution.