PD Archieve 1-09

Over the last several days the question of the legality of online poker has been brought up. In order to clarify this and to start off the New Year, we are revisiting the question of how the IRS handles gaming winnings, the legality of Internet gaming and the enforcement of the UIGEA of '07. Articles from Other Publications IRS Audits of Gaming Transactions are on the Rise
Yolanda Smulik-Roche	If our practice is any indication, the IRS has greatly increased the number of audits it is performing on gaming transactions. Whether you are new to poker or an "old pro," you should be familiar with the basic rules and regulations that apply to gaming so that you can "audit proof" yourself should you get that dreaded notice of an audit, which comes in several flavors. The IRS can select you for an office audit, which requires that you produce your records regarding winnings and losses, or it can just make changes to your return and send you a Notice of Deficiency on which it bills you for increased tax, penalties, and interest. The Notice of Deficiency is handled through the mail, and you are given a time limit to disagree with what the IRS has done. In either case, if you do not have any records, you have no recourse but to pay the deficiency in tax owed, along with the penalties and interest. To prevent having to pay more, you must comply with the rules and regulations as prescribed by law. Unfortunately, some of these rules and regulations are not applied consistently by all of the IRS offices. To assist you in complying with the IRS rules and regulations, we are presenting the tax basics below. Finish the Story
IRS Stiffens Enforcement Rules on Poker Winnings
C.R. Roberts	This just (all) in from the IRS: Starting next year, casinos and other sponsors of poker tournaments will be required to report most winnings to winners and to the Internal Revenue Service. The new requirement, which goes into effect on March 4, 2008, is contained in guidance released Sept. 4 by the Treasury Department and the IRS. The guidance is designed to clear up confusion about the tax reporting rules that apply to poker tournaments. For tournaments completed during 2007 and before March 4, 2008, casinos and other sponsors of poker tournaments will not be required to report the winnings to the IRS or withhold tax on the winnings. But beginning March 4, 2008, the IRS will require all tournament sponsors to report tournament winnings of more than $5,000, usually on an IRS Form W-2G. Finish the Story
IRS Clarifies Poker Tournament Tax Rules Winnings Will Start Being Reported to IRS March 4, 2008
Donald E. Shelton	IRS has advised that, starting on Mar. 4, 2008, casinos and others sponsoring poker tournaments must report most winnings to winners and IRS. The guidance is designed to clear up confusion about the tax-reporting rules that apply to poker tournaments. Finish the Story
Tax Strategies for Poker Players How to avoid problems with Internet and tournament winnings
Ann-Margeret Johnson	Well, it is that time of the year once again that is dreaded by not only CPAs everywhere, but every true American; it's tax season. This tax season may be difficult for some poker players who do not understand the rules and laws that govern poker winnings. If you were one of the thousands of players who won a sizable tournament, you also were probably the "lucky" winner of a Form W-2G, showing the amount of money you took home. But reporting poker winnings isn't that simple. Finish the Story
US Treasury, Federal Reserve Publish UIGEA Rules
Haley Hintze	In a highly controversial move pushed through in the waning days of the Bush administration, officials at the US Treasury and the Federal Reserve today formally published rules and procedures as called for by the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA). Finish the Story
Bush Administration Moves Forward on Midnight Rulemaking to Force Banks to Ban Internet Gambling
PRNewswire	The Bush Administration is working to finalize regulations to enforce a ban on Internet gambling despite concerns raised by leading financial service companies that the regulations are ambiguous, burdensome and not likely to stop millions of Americans from gambling online. It is expected that the regulations, issued to implement the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), will be finalized at the last minute before they can be stopped by the Obama Administration - an orchestrated move being linked to a former National Football League (NFL) lobbyist now working in the Bush Administration. Finish the Story
UIGEA repeal in cards for 2009?
Jason Kirk	By anyone's measure, we've just experienced a monumental year for poker. With unprecedented growth in the number of people involved in the game and the number of places where they're playing, not to mention a few scandals big enough to make 60 Minutes, the game was bigger than ever in 2008. That sets the stage for an even bigger year ahead. Here's a look in the PokerListings crystal ball to see what's in store for 2009. Finish the Story
Govt. Files Reply to iMEGA's UIGEA Appeal
Shari Geller	In a new development in iMEGA's court challenge to the UIGEA, the Department of Justice has filed a response to iMEGA's appeal in the case. iMEGA filed its complaint last year, and the District Court dismissed it. iMEGA then appealed the dismissal, and since then the case has been slowly wending its way through the Third Circuit Court of Appeals. Finish the Story
UIGEA Regulations Issued: Still Vague and Problematic
Gambling911	The US Department of the Treasury and the Federal Reserve System today released the final regulations for the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). Volumes of testimony about the law's vagueness and practical unworkability from both within and without the administration, most notably from the US banking sector, upon which the burden for enforcing UIGEA will fall, appears not have swayed regulators, as the published regulations differed little from the draft version that had been the subject of debate for more than a year. Finish the Story
Gambling Law Professor, I. Nelson Rose Interprets Finalized UIGEA Regulations
I. Nelson Rose	Compatiblepoker was the first to read Mr. I Nelson Rose's analyzed comments on the finalized regulations set upon banks to stop gambling deposits for US citizens. The article can be read here "The New Internet Gaming Regulations: Nothing Changes" with latest updates continuing at www.compatiblepoker.com/usa.php. The just released article covers in depth what impact this will have on poker players who gamble online from the United States on games of poker and online casino tables. The date given in which banks must comply to the UIGEA is December 1, 2009 almost 3 years after the UIGEA was actually passed, giving online gamblers yet another year. Finish the Story