ITH Poker Forum

[CroMagnon]

Just read most of a thread at 2+2 and am quite lost? Do I need to report that I have cash in an acount with a poker site?

Thanks,
Cro

[janeg]

Did a quick google and found this on the Journal of Accountancy site

TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), must be filed by U.S. persons having a financial interest in or signature authority or other authority over any financial account in a foreign country if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.

June 30 is the deadline for filing the current year FBAR.

Looks like you're ok if you never exceeded 10k in all of your accounts.

Also found this response at Taxable Talk to a similar question by someone who read the 2+2 thread

Next, I've gotten several questions relating to the filing of the report of Foreign Bank and Financial Accounts. Here's one of many: I read on your blog of the need to file the Report of Foreign Accounts. But I don't want to because it will increase my risk of audits, and I don't think it's required. I read on 2+2 that online poker accounts are 'transfer accounts' and not foreign bank accounts. I'm not a big gambler, so why should I file this form?

First, Congress wrote this law. The IRS and the Department of the Treasury have the thankless task of interpreting this law.

And this law is fairly clear: Foreign financial accounts must be reported if an individual has $10,000 or more in one or more foreign financial accounts. Casinos in the United States fall under financial institution reporting requirements; why shouldn't casinos in other countries be considered foreign financial institutions?

Additionally, many of these online casinos offered "echecks" and would take money directly from patrons' checking accounts. Those are activities that banks perform.

As to why you should file this form, it's simple: It's required. If you don't, and you are caught, you can face up to a $10,000 fine for non-willful non-reporting and a minimum $100,000 fine for willful non-reporting. You can also find yourself sent to ClubFed. If you think that the defense "I didn't know about this" or "I was a small time player" will work, I'll tell you now that neither will.

[CroMagnon]

Thanks Jane. Looks like I don't have to worry about this...for now. Seems a bizarre requirement. Do Canadiens have a similar law?

Cro

[janeg]

Not as far as I know, we aren't taxed on profits from gambling at the track, lotteries or elsewhere; I believe, however, that if gambling is your main source of income for 5 years or more then you are required to report it as income. Never had that problem so don't know for sure.

[rocketplayer]

this has nothing to do with gambling. It is about US citizens hiding money overseas and not reporting. Been around for years.

[the_hawk]

When I saw the thread I read FUBAR. Coming to think of it I probably wasn't far off