Irs Gambling Joke

Irs Gambling Expenses
Irs Gambling Jokes
Irs And Gambling Man Jokes

The IRS isn’t leaving gambling reporting to chance. It has issued new final regulations clarifying and expanding the rules for payors of slot, bingo and keno winnings. Most notably, in response to an outcry from the gambling industry, higher ...

In gambling, there are winners and losers. But even the winners can be losers if they don't pay their taxes! Any money you win gambling or wagering is considered taxable income by the IRS as is the fair market value of any item you win.
A collection of short, funny jokes related to Gambling and Casinos!” Quick, Funny Jokes! Gambling, Casino Jokes Jokes on our Main.
Funny Jokes - The IRS Audits The Gambling Grandpa.

“Commentators overwhelmingly opposed the idea of reducing these reporting thresholds. Payors opposed lowering the thresholds because it would result in more reporting, which would increase compliance burdens for the industry,” said the IRS in the regulations. “In fact, many commentators suggested that rather than reducing the current thresholds, they should be increased to account for inflation. These final regulations do not change the existing reporting thresholds for bingo, keno, and slot machine play.”

The IRS decides to audit Grandpa, and summons him to the IRS office. The auditor was not surprised when Grandpa showed up with his attorney. The auditor said, “Well, sir, you have an extravagant lifestyle and no full-time employment, Which you explain by saying that you win money gambling.

For taxpayers, gambling winnings are treated as taxable income on federal income tax returns, but the tax may be offset by losses up to the amount of the winnings. For example, if you win $5,000 during the year and incur losses of $4,500 in the same year, you owe tax on only $500. The losses are reported on Schedule A, but aren’t subject to the usual 2%-of-AGI floor for miscellaneous deductions.

For businesses, information reporting is required for payments of $600 or more to a taxpayer during the year. While temporary regulations had boosted the reporting thresholds for winnings from bingo games and slot machines to $1,200 and $1,500 for keno games, proposals would have lowered these amounts back to $600.

The information is reported on Form W-2G, “Certain Gambling Winnings,” which must be filed by February 28 of the following year; March 31, if filed electronically.

Now the new regulations hold the line on the reporting thresholds for bingo, slots and keno games. The regs also retained the rules, with minor modifications, on identifying information that must be provided by gamblers. In addition, they adopted an “aggregate reporting” rule, with winnings for a single gambling session being allowed as an alternative to reporting each win that exceeds the required threshold. A single session is defined as the time between a gambler placing a wager on a certain game and completing the last wager on the game before the end of the same calendar day.

The IRS also agreed to allow gambling institutions to use “gaming days” instead of calendar days for reporting periods if its use is uniform. Gaming days are generally used for other accounting purposes.

Irs Gambling Expenses

Finally, the new final regulations did not include proposed rules that applied to electronically tracked systems for slot machines. The proposed regulations required reporting for winnings at least $1,200 within a calendar day session. However, the casino industry successfully argued that the technology would not support this and that it would “chill customer use.” Count this as a win for the casinos.

The Internal Revenue Service (IRS) can only tax income that it knows about. For a bold segment of the taxpaying public, this is an invitation to hide as much money from the IRS as possible. Hiding money is a form of underreporting income in which there is no question that the perpetrator is committing tax evasion. You don't 'accidentally' deposit millions of dollars in gambling winnings in an untraceable offshore account. This type of tax evasion requires a knowing intent to cheat the system and is punishable by significant jail time.

Money laundering is a prime example of evading taxes by hiding the source and amount of income. Money laundering is an attempt to disguise illegal income -- from a drug operation, illegal gambling ring or other form of organized crime -- as legitimate income, or to erase evidence of the income altogether.

In the past, money laundering was primarily accomplished through a front, or shell company, two terms describing an incorporated legitimate business with no real function other than to 'clean' dirty money from an illegal activity [source: Legal Information Institute]. The classic example is a beauty salon or a dry cleaning business that never seems to be open. The money launderers draw up fake invoices and receipts to create the appearance of a thriving business. But instead of earning real income, the money launderers deposit funds earned from the illegal activity. The downside of traditional money laundering is that criminals still have to pay taxes on this phony income.

Irs Gambling Jokes

Today, thanks to a largely electronic banking system, modern money launderers have become experts in hiding both the source and destination of money through complex international banking transactions. For example, a money launderer can set up hundreds of separate bank accounts around the world in different names. He can then deposit small amounts of dirty money in each account so as not to draw attention. This is called layering. Withdrawals from these accounts are equally complex and layered, making it hard for investigators to follow the paper trail.

Foreign or 'offshore' bank accounts are a popular place to hide both illegal and legally earned income. By law, any U.S. citizen with money in a foreign bank account must submit a document called a Report of Foreign Bank and Financial Accounts (FBAR) [source: Internal Revenue Service]. But that doesn't stop millions of Americans from secretly funneling money into untraceable offshore accounts.

Irs And Gambling Man Jokes

The IRS initiated a voluntary offshore disclosure program in 2009, promising limited penalties and no criminal prosecution to people who come clean about unreported money in foreign banks. So far, it has collected $4.4 billion in back taxes from 33,000 separate voluntary disclosures [source: Internal Revenue Service]. Also in 2009, the United States signed a treaty with Switzerland to gain unprecedented access to the Swiss bank accounts of Americans suspected of tax evasion [source: Internal Revenue Service].

Now let's take a closer look at business and corporate tax evasion.