Category Archives: Gambling

Just File the FBAR

Posted on June 18, 2014 by Russ

Several of our clients have asked, “The decision on poker accounts being ‘banks’ is nonsensical. Do I really have to file an FBAR for those accounts?” I am in general agreement with the individuals questioning the ruling. Banks and financial … Continue reading →

Posted in FINCEN, Gambling | Tagged | 5 Comments

More on the Hom Decision

Posted on June 9, 2014 by Russ

Jack Townsend of the Federal Tax Crimes Blog has a post on United States v. Hom today. In his post, he notes that Mr. Hom represented himself. Indeed, the court is still looking for a pro bono counsel to represent … Continue reading →

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Back to the Past: Poker Sites and FBARs. Poker Sites Are Again Reportable Foreign Financial Accounts

Posted on June 5, 2014 by Russ

Back in the past, I asked the FBAR group at the IRS whether or not poker sites needed to be reported. In January 2009, they told me they did have to be reported. In prior years, the FBAR group said … Continue reading →

Posted in Gambling, IRS | Tagged | 2 Comments

Staking and the 2014 WSOP: Nothing Has Changed

Posted on May 24, 2014 by Russ

The poker world is about to descend on Las Vegas. Over the next several weeks, many players who enter the myriad of poker tournaments from expensive tournaments at the World Series of Poker to more affordable tournaments at Binion’s and … Continue reading →

Posted in Gambling | Tagged | 3 Comments

Yes, Online Poker Players Must Pay Taxes

Posted on April 3, 2014 by Russ

The Las Vegas Review Journal has a short article on the fact that online poker players must pay taxes. The article notes that winning players must pay taxes; of course, both winners and losers are supposed to include their winning … Continue reading →

Posted in Gambling, Nevada | 1 Comment

A Second Bite at the Apple? Yes, When You Don’t Read the Fine Print

Posted on March 13, 2014 by Russ

I previously wrote about betonsports.com, a former Internet sports betting website. One of its executive, David Carruthers, made the mistake of changing planes at DFW. Unbeknownst to him, he had been indicted. His two-hour layover got extended…to 33 months at … Continue reading →

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The Moral Climate may have Changed but the Law Hasn’t

Posted on March 11, 2014 by Russ

Another professional gambler went to Tax Court seeking to stop Section 165(d) of the Tax Code–the section that stops a gambler from deducting losses in excess of wins. This ended up being a full decision of the Tax Court, so … Continue reading →

Posted in Gambling, Tax Court | 1 Comment

Taxes and Daily Fantasy Sports: The Duck Test

Posted on February 23, 2014 by Russ

If it looks like a duck, walks like a duck and quacks like a duck, then it just may be a duck. So said someone (this quote has been attributed to Walter Reuther among others), and it’s one of those … Continue reading →

Posted in Gambling | Tagged | 4 Comments

What Are the Tax Impacts of the FullTiltPoker Remission Payments?

Posted on February 21, 2014 by Russ

In less than one week, many poker players will finally receive their balances that they had at FullTiltPoker when that online poker site was shut down as a result of “Black Friday.” According to the Garden City Group (the claims … Continue reading →

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Mailbag: Can Gambling Income Transform to Ordinary Income by Moving It Through a Business Entity?

Posted on February 9, 2014 by Russ

Back in the Middle Ages, alchemists attempted to transform base metals into gold and silver. If only one could change lead into gold. Unfortunately, lead is lead and gold is gold. Why do I bring up alchemy? Because I received … Continue reading →

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