Posted: Tue Apr 08, 2008 1:42 pm Post subject: Does the IRS and...
the state share info? I live in a state where there is a law against playing online poker. I was filling in my tax return and the gambling form requests the name of the company that paid the winnings. If I fill this out is there a better chance that the state will prosecute? Not paying tax on the winnings, while it is a small amount, is also not a good idea.
Anyone else in a similar situation? What do you do?
I am feeling like I need to just quit playing online. Which would be a bummer seeings how I am addicted (to winning).
You don't have to tell them it was poker. Just list "gambling income." When this came up before, Wynton said that the IRS and the state can share information. As a practical matter, I doubt very much that you would be the kind of person they would target. I'd pay the tax but just describe it as "gambling" with no other detail. Could have been Vegas, whatever.
Joined: 07 Mar 2005 Posts: 2998 Location: Nashville
Posted: Tue Apr 08, 2008 4:29 pm Post subject:
Cro, I'm not aware of any gambling "form". Are you using turbo tax or similar software?
The Shark is right, be vague and just list gambling as the source.
States and the IRS constantly share tax information. They usually share info electronically though, just matching vital numbers and such. It's not as if the state dials them up and asks for specific wierd stuff - though I'm sure they would under the right circumstances.
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