I'm a CPA and here's the bottom line. You are "supposed" to report the gambling winnings, but there no way the IRS can trace it, since the sportsbooks are international and don't report to the IRS. Casinos and Racetracks inside the US like WILL report gambling winnings on a form W-2G, but it does not appear that applies here.
TerryRay, the IRS only gets reported to if you deposit CASH into your bank in excess of $10,000 in a single occurrence. You don't know what you are talking about. The worst the guy gets hit with is failure to report income (and the accompanying tax bill) if the IRS decides to examine him (hardly a felony). In my experience unless the IRS sees something wonky in your 1040 they won't even ask for bank statements.
I'm a CPA and here's the bottom line. You are "supposed" to report the gambling winnings, but there no way the IRS can trace it, since the sportsbooks are international and don't report to the IRS. Casinos and Racetracks inside the US like WILL report gambling winnings on a form W-2G, but it does not appear that applies here.
TerryRay, the IRS only gets reported to if you deposit CASH into your bank in excess of $10,000 in a single occurrence. You don't know what you are talking about. The worst the guy gets hit with is failure to report income (and the accompanying tax bill) if the IRS decides to examine him (hardly a felony). In my experience unless the IRS sees something wonky in your 1040 they won't even ask for bank statements.
One more thing brother, if you were to get audited, the IRS also will look at your assets and apply an "economic means" test. So if you are reporting $20k in wages and live in a $500k home or drive a $75,000 corvette that would give cause to check into your bank accounts.
One more thing brother, if you were to get audited, the IRS also will look at your assets and apply an "economic means" test. So if you are reporting $20k in wages and live in a $500k home or drive a $75,000 corvette that would give cause to check into your bank accounts.
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