Affiliate Profits and the IRS

[GregK]

I don't think a single poker co. has "poker" or "gambling" etc. in their corporate name? Do they?

Kind of a... "If they don't ask, don't offer the info" situation, just leave it at "affiliate commissions" "online marketing" etc.

[Georgia Poker]

Even drug dealers are required to pay taxes. I seriously doubt the IRS is going to turn you over to the Feds if you list income from PartyGaming, etc.

[DukePoker]

It is very important to pay all the taxes you owe to the IRS, if you arent comfortable just list is as Misc. Gambling. However, you should keep good records of all of your transactions just in case you are audited. However, as long as you actually report what you earn, you have no reason to be scared, the IRS won't report you for gambling online and being an affiliate.

[corpfan1]

Yes, but what if we lose some gambling. Do we report the results or the profits?

Also, I am in Canada so?

[PeeWee]

If the bank account you have your deposit sent to is a personal checking account or savings, make sure the deposit amount is under $8000. This raises red flags with the IRS. You will have to fill out some paperwork about the money.

I usually like to keep my deposits to a max of $5000.

My Affiliate earnings do not even come close to those numbers, however I like to transfer half to my PP account, then I withdraw to my epassporte. Then jus ttake out my $400 a day when needed.

And for everyone who is scared about the IRS and online gambling. I won $45000 at a online sportsbook 2 years ago. I hit a 15 team baseball parlay. Anyway, I claimed the $45000 as income and paid my taxes, told them where i got it and guess what, they never asked me a second question. As a matter of fact, after I paid my taxes, they sent me back about $1500 in adjustments because they were off.

Until the front page of the newspaper or the headline on CNN says "Internet Gambler/Affiliate BUSTED" I will not worry about online gaming or affiliation.

[bigboy]

and you definitely don't want your name in that headline!!

[CasinoMack]

Report everything. OR I WILL REPORT IT FOR YOU. Are you scared yet?


I seriously report all my earnings the correct way. That means if I make $1000 at pokerroom#1 and I play $200 and lose it all, I still report that I earned $1000.

[corpfan1]

Ya, but here in Canada...not sure about the US...gambling losses can be written off vs. gambling profits.

I guess you don't consider affiliating gambling profits though? Right?

[CasinoMack]

Gambling losses cant be written off gambling wins. Unless you claim professional poker player.

Can we just end this thread? Talk to your tax guy or Attorney, no one here is going to give you any advice that we should follow........seriously