I just don't think they would take the time to go after someone for 5k in unreported yearly gambling winnings. There are bigger fish to go after. 5k is like a drop in the bucket to the IRS.
Taxes?
- Thread starter EasyRhino
- Start date
I just don't think they would take the time to go after someone for 5k in unreported yearly gambling winnings. There are bigger fish to go after. 5k is like a drop in the bucket to the IRS.
Did you even bother reading the entire post? Most audits are conducted by random,it has nothing to do with you not reporting. But if you are audited and you didn't report,then there is a problem.Its not a matter of taking the time to go after a 5K loss,its when they are investigating you and find the 5K that the problem starts.
By the way,a casino can file a SAR on you for any reason.Win too much money and you just might find a treasury agent checking you out.Casinos have been known to do it to APs.Max Rubin has written several times about this.
I thought whenever a ctr was filed it was mandatory that a SAR was also filed?
Where did you hear that? Anyway,thats not correct.Ratio of CTRs to SARs is at least 100-1.
EasyRhino
Well-Known Member
I've read that SAR proliferation is becoming a real problem though, in that there are just gillions of them reported. Mainly because financial insitutions will "defensively" file one for just about any reason as a CYA move.
Unfortunately, I don't remember any stats about the ratio compared to CTRs. They're not automatic like CTRs, but they can be done for any dollar amount. Hell, I realized in hindsight that when I went up to the cashier with $500 in twenties, and wanted them changed for hundreds, that could have looked kind of suspicious.
Regardless, if you start getting tagged with CTRs or SARs, it goes to somebody at the Treasury department. But it is not a tax document, so it doesn't go automatically to the IRS. That doesn't meant it won't go to the IRS, especially if you were audited.
Unfortunately, I don't remember any stats about the ratio compared to CTRs. They're not automatic like CTRs, but they can be done for any dollar amount. Hell, I realized in hindsight that when I went up to the cashier with $500 in twenties, and wanted them changed for hundreds, that could have looked kind of suspicious.
Regardless, if you start getting tagged with CTRs or SARs, it goes to somebody at the Treasury department. But it is not a tax document, so it doesn't go automatically to the IRS. That doesn't meant it won't go to the IRS, especially if you were audited.
Yes I read the thread and I remember you saying one half of one percent of tax audits are random. Now you say MOST are. Which is it?
I think I have found a loophole for this type of situation.
Besides, there is no law requiring me to pay taxes! You can learn some useful information in the ZenZone!
Revenant
New Member
I have been reading the forum for a while and never have anything to add. Finally I get my chance. If you want to read some interesting (if a bit dated material) on taxes/audits check out Ragnar Benson's guide to the underground economy and Adam Cash's Guerilla Capitalism. The second has a pretty good section on titled protecting yourself from the IRS.
Also if you have significant winnings it may be in your best interest to consult a tax lawyer.
Also if you have significant winnings it may be in your best interest to consult a tax lawyer.
Thats not what I said. I said One half of one percent of returns are randomly audited.Not one half of one percent of audits are random.
Huge difference.
Well, one half of one percent returns are randomly audited, which is pretty small.
Im just curious here. If I have less money in my bank account than I have made since last tax return, how would they know I had any unclaimed winnings?
I don't have to pay taxes on this year's gambling winnings if I can claim them against previous losses right? How exactly does that work when filling out your claim? There is no spot to claim losses, so I never have, but now I want to claim my winnings and have them offset by previous losses.
One half of one percent is just about the same as the house edge in blackjack.
Now,if you file taxes for the next forty years,and each year you have a half percent chance of being audited,what are the chances of being audited at some point in the next forty years? Also,keep in mind that when you are randomly audited,they often go back three years.
btw-small businesses and their owners tend to get audited more frequently than standard returns.
You can deduct this years losses from this years winnings,you can't claim losses from earlier years.
There is a seperate schedule you use to file gambling win/losses.
There is also a tax catagory for the professional gambler,that will allow you to deduct your travel expenses,but the rules are extremely rigid as to who can use this.
There are several books out on the subject. I recommend Jean Scotts.Don't have the title in front of me but it is sold at most web gambling sites that sell books.Pretty sure its available at The Las Vegas Advisor bookstore.
Hope that helps.
Now,if you file taxes for the next forty years,and each year you have a half percent chance of being audited,what are the chances of being audited at some point in the next forty years? Also,keep in mind that when you are randomly audited,they often go back three years.
btw-small businesses and their owners tend to get audited more frequently than standard returns.
You can deduct this years losses from this years winnings,you can't claim losses from earlier years.
There is a seperate schedule you use to file gambling win/losses.
There is also a tax catagory for the professional gambler,that will allow you to deduct your travel expenses,but the rules are extremely rigid as to who can use this.
There are several books out on the subject. I recommend Jean Scotts.Don't have the title in front of me but it is sold at most web gambling sites that sell books.Pretty sure its available at The Las Vegas Advisor bookstore.
Hope that helps.
Do you pay more taxes on gambling winnings as opposed to regular income?
Most of my "gambling" winnings were not really gambles at all. For example bonus hunting, three-card poker promotion, etc.
So if I gamble semi-professionally, can I claim my gambling winnings as regular income and pay less taxes on it?
Thanks for all the advice!
Well, I do both. I gamble (with the advantage), and I also have a regular job. Which category do I belong in? Do I file the regular income tax return or the one for professional gamblers?
And I always thought they taxed lottery winning more than regular earnings...
You'd have to look into it,but my understanding of professional gamblers is that they have no income except for their gambling.
Anyone else is treated as the other group.
You might get the impression that lottery winnings are taxed at a higher bracket because a big hit will push you into the highest bracket,but $10,000,000 in lottery winnings is taxed the same as $10,000,000 in salary.
Anyone else is treated as the other group.
You might get the impression that lottery winnings are taxed at a higher bracket because a big hit will push you into the highest bracket,but $10,000,000 in lottery winnings is taxed the same as $10,000,000 in salary.
Dont claim your gambling winnings! I wouldnt anyway, why let them take more than they already do?