Tax Issues

[Ranger Blue]

I was just wondering if any one has ever had an issue with the IRS or any government agency when it came to taxes on winnings. I wager online, and am aware that it is technically illegal, although widely known to exist. My question is, if I am cashing out (make) say $3,000 on a monthly basis, I am basically not paying taxes on $36,000 of income. I get bank wires and checks from these online sportsbooks signed by "technology companies." If there was ever an investigation as to why I get monthly checks from this company in Canada or wherever, aren't I basically screwed?

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The issue is not that I am worried about being caught sports betting, its about the taxes and how if I ever made consistent money over a prolonged period of time (profit of 100,000+), there would be a trail of payments, checks, bank wire's, ect. that would be unexplainable.

[tron1979]

The only thing that really sets off the alarm bells are transactions over $10,000 at one time that circulate through your acct...I would simply just have the offshores send checks and just cash them, dont deposit them...

If you are ever worried about having too much cash around, you can purchase gold or silver in cash that is easier to conceal...

I would suggest South African Krugerrands that regardless of the price of 1 troy oz of gold always have a great resale value due to their collectability...You can buy them at current gold prices and they are easy to resell...Gold should hold steady so you have little risk of eating the investment...

[Jawnny Cash]

I just cash the checks @ different banks then my own and do not deposit it directly into my personal checking accounts. Like TRON said, then you have liquid cash and you are good to go.

[Ranger Blue]

I dont think a bank would cash a 3,000 check unless you have an account with them because they always have to put a hold on it.
Do you mean to go to one of those Check/Cash stores where there is like a 2% cashing fee?

Also the problem with cash, is that a lot of bills need to be paid with checks/credit cards/or just via my bank account.

Maybe the solution is to cash the checks and slowly deposit like 1,000 at a time so as to not raise flags?

[Jawnny Cash]

Ya.. They charge me a fee for cashing the check and I deposit increments just like you mentioned

[Ranger Blue]

Has anyone ever heard of anyone getting in trouble because of tax issues related to gambling? I know most of us don't make crazy amount of money, but possible for those who make significant profit in a year, the extra income may raise flags.

[Texas Longhorns]

My wife is a Banker, the red flag is raised at $10,000.01. At this amount the bank has to submit a claim to the IRS and they begin tracking that person.....FYI

[Ranger Blue]

Thanks for the info. The government probably doesnt want to put itself in the middle of sports wagering earnings because it is a slippery slope. They are aware it goes on, and that many people partake in it, yet do very little to prevent it. Also, if you go after me for wagering winning, you better be going after everyone else or it would violate my equal protection rights.

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I actually once cashed out via bank wire for 30,000 after winning a huge parlay a few years ago... that bank account is now closed though.... and I had stopped wagering for a period of time after that. Hopefully they aren't already on to me!!!