In regards to Mike's post EVERYONE who gets paid in cash "cheats", I consider myself a subset of "EVERYONE".
Last year I won $125 at a video poker tournament. No paperwork, W2G, or Misc income form. I was paid in cash.
I reported the $125 as a contest win on my taxes. I am worried however about video poker machines that are not honest.
I keep hearing stories. Can someone clear this for me?
-----Original Message-----
From: mike <melbedewy1226@hotmail.com>
To: vpFREE <vpFREE@yahoogroups.com>
Sent: Fri, Mar 4, 2011 10:45 am
Subject: [vpFREE] Re: "BIG teams became extinct due to IRS pressure"
Oh please. EVERYONE who gets paid in cash "cheats". Everyone. They don't have enough jails in the galaxy to lock everyone up.
El Cortez used to have drawings for $1199, which they announced with "The Winner Keeps It All".
The only people who doubt this are those who blithely proclaim "VP machines can never be gaffed".
Shhhh...don't tell American Coin!
--- In vpFREE@yahoogroups.com, Barry Glazer <b.glazer@...> wrote:
>
> > 6e. Re: "BIG teams became extinct due to IRS pressure"
> >
> ....
>
> >
> > Now here's the question: will even one person intending to
> > break the law in a casino now refrain because of the
> > knowledge that it could hurt more than just themselves...I
> > doubt it.
> >
>
> You are certain to be correct -- I recently played in a World Series of Poker circuit event where one of the travelling dealers and some of the players at the table were discussing taxes, and made it quite clear that income without paper work (W2, W2G, 1099, that pretty much forces you to file), is, in their opinion, not "reportable". Poker dealers are paid in casino chips (in this tournament series); players in cash games don't generate paperwork either when they win. Players and dealers in this discussion, and in others I've heard, hold this view very widely.
>
> Of course, all income, including gambling income, is reportable.
>
> You also see posts here quite regularly about the same attitude.
>
> What surprises me is that people are willing to state this in front of absolute strangers. One of my best friends used to work for the IRS (in collections, not audit) and also played a lot of poker and VP, and I know from him that there are a few other IRS employees that play in casinos (they don't make themselves known as such, not because they're looking for tax cheats, but because no one likes them very well once they know who the boss is). My friend would never have reported anyone, but it makes a point -- and people forget that those who report tax cheats can get a reward based on collected taxes. Why admit you don't pay what you should in front of strangers???
>
> Yes, taxes suck. Yes, they take a lot of the fun (and probably all of the profit) out of playing marginally player-favorable games. While there are some legitimate areas of dispute (such as how to calculate a "session"), none of that changes the tax law as far as reporting income. INTENTIONALLY not reporting income is a potential criminal (translate: jail) offense. If you think you're not a big enough fish for them to go after, remember there is more than just you, and the IRS periodically picks a group of people in some arena (casino dealers, those with household employees, all kinds) to intimidate into compliance by taking on a few individuals (or just one) to tackle hard and visibly in order to scare others into compliance.
>
> So tax cheats, proceed at your own risk.
>
> --BG
> ==================
>
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