Discussion:Are online Casinos and Poker Rooms financial accounts for orm TD F 90-22.1
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Discussion Forum Index --> Tax Questions --> Are online Casinos and Poker Rooms financial accounts for orm TD F 90-22.1
| 10 March 2009 | |
| Failure to file this form can subject the taxpayer to 100K in penalties. The threshold is 10K in foreign accounts.
One preparer is passing on informal advice that those with oversea poker accounts or online casino accounts should list them and file form TD F 90-22.1 if they aggregate more than 10K at anytime during the year. This can be rather easy to do. A client might have 4 different poker accounts. An offshore sportsbet might credit more then 10K on a single race. Any number of combinations are possible. Is there anyone that can shed some light on this question? Anybody have a treasury connection? Feedback? Astoundingly, this is a new occurance. Last year poker accounts were not financial accounts. This year they are financial accounts. All thoughts appreciated. http://www.taxabletalk.com/posts/1233077232.shtml Bilbo | |
| 11 March 2009 | |
| On-line gambling is illegal if I remember right. Doubt you can take loses but income is taxable. taxea | |
| 2009-03-11 | |
| Yes, it looks like these accounts are now considered financial accounts for the purposes of Treasury reporting.
http://www.taxabletalk.com/posts/1233077232.shtml I don't see a change in the TDF 90-22.1 instructions, but I do in the definitions of foreign financial institutions under non-reporting penalties. Maybe there is more on the FinCEN website. | |
| 2009-03-11 | |
| And this has nothing to do with income per se. It has to do with potential money laundering. | |
| 11 March 2009 | |
| I posted a link before, saw the copyright so I took it off
Section 61 : declare income from online poker Title 31, chapter 53, section 5312 - defines financial institution TexCPA 19:49, 10 March 2009 (CDT) | |
| 11 March 2009 | |
| Taxea, I'm not worried about online poker being illegal for individuals. I don't believe it is in all states. The UIGEA is really aimed at financial institutions. I suspect it might be repealed. Right now, the client should deduct his losses on Sch A if he is not a pro. Pros use Sch C. But note the new IRS advice on how to measure a "win" or a "loss".
TexCPA, thanks for the heads up on the definition. I think that makes it pretty clear. Online players better file the form if they aggregate more then 10K during the year. Bilbo | |
RoyDaleOne (talk|edits) said: | 11 March 2009 |
| TexCPA would you please explain about the link to copyright material? | |
| 11 March 2009 | |
| Roy: here you go, I found a pretty good article for Bilbo and posted the link, took it down, b/c i didn't want to violate the board's rules re: copyright, maybe Trillium might chime in re: 'linking' copyright material on the board
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Boston cpa (talk|edits) said: | 30 March 2009 |
| Does this mean that a client would be safe for calendar years 2007 and earlier, if they hadnt reported online poker accounts? i.e. assuming Bilbo's assumption is correct: "Last year poker accounts were not financial accounts. This year they are financial accounts", does that mean that the IRS's new clarification is an 'admission' in the sense that a taxpayer would be safe for years prior to such 'admission'?
The reason i ask is that i've seen heated debate in other tax forums as to whether online poker players should go back and file TDF 90-22.1 for the last few years (although it now seems that, assuming Bilbo's interpretation is correct, it's a clear YES for 2008, which is due by 6/30/09). One other note: many players use 'e-wallets' as transfer agents (Neteller was one of the popular ones, since shut down), and e-wallets are almost definitely fin. inst's for purposes of the FBAR form. Not all players use e-wallets though. | |
