Category Archives: Gambling

Conduit or Right of Claim?

Posted on September 10, 2007 by Russ

The Tax Court decided an interesting case today. An individual receives gambling income, but has given the payee a Form 5754, stating that the income belongs to another individual. However, the other individual doesn’t claim the income. The IRS goes … Continue reading →

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Poker Tournaments Takes a Hit

Posted on August 31, 2007 by Russ

Back in 2005, I speculated that the IRS would write a regulation requiring withholding from poker tournaments. The IRS will, on Tuesday, announce Revenue Procedure 2007-57, requiring withholding from any winner of a poker tournament who has received more than … Continue reading →

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“The Income Tax Only Applies to Government Entitiies, Foreigners & Foreign Corporations”

Posted on August 26, 2007 by Russ

A friend of mine received an email that states, in part: “I do not agree with your synopsis though that gamblers of the 50 staets have any obligation whatsoever for the withholding of Federal income tax on lottery winnings. Why? … Continue reading →

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A Tax, A Compact, A Battle

Posted on August 14, 2007 by Russ

Today in San Diego a federal judge will hear arguments in a case between the Rincon Indian tribe and the State of California. The battle is over whether or not California negotiated in good faith over a compact with the … Continue reading →

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Neteller Settles

Posted on July 18, 2007 by Russ

Somehow it’s fitting on the day that the World Series of Poker champion is crowned that we find out that Neteller, the beleaguered Internet payment processor, has settled with the U.S. Department of Justice. According to the press release that … Continue reading →

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The Other Big Winners at the World Series of Poker

Posted on July 18, 2007 by Russ

Congratulations to this year’s winners at the World Series of Poker, run by Harrah’s, and hosted at the Rio Hotel & Casino in Las Vegas. The Main Event, the World Championship of Poker, has just been completed. This year, 6,358 … Continue reading →

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Neteller Founder Pleads Guilty

Posted on July 1, 2007 by Russ

One of the two Neteller founders pleaded guilty on Friday to one count of conspiracy. Stephen Lawrence told the Associated Press, “I came to understand that providing payment services to online gambling Web sites serving customers in the United States … Continue reading →

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He Gambled and He Lost (In More Ways than One)

Posted on May 23, 2007 by Russ

I’ve repeatedly said that gamblers aren’t treated well under the Tax Code. One Michigan resident allegedly had a way around this problem: just ignore the gambling. This may turn out to be a much bigger problem, as he now faces … Continue reading →

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What If a Casino Decides to Ignore the Rules?

Posted on May 17, 2007 by Russ

Suppose you’re a poker player, and you are backed (sponsored) by a friend. You’ve agreed with your friend that for the money that he has given you, you will give him 50% of your winnings. You complete the IRS Form … Continue reading →

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Humorous Mail During Tax Time

Posted on April 26, 2007 by Russ

It’s always amazing to read the mail. I’ve received several items (mainly by email) that are interesting. So let’s take a look at some of the mail. Of course, none of the answers are specific tax advice; anyone needing specific … Continue reading →

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