vpFREE2 Forums

Michigan man charged with evading taxes on casino winnings

#1

In a message dated 5/28/2007 9:20:42 A.M. Central Daylight Time,
b.glazer@att.net writes:

I hope the IRS strikes a deal with him for some kind of decent tax
settlement, perhaps using casino records, which will likely document a loss for him
unless he knows what he's doing. We wouldn't want to have the govt. "take out"
one of the players who keeps the good games alive for all of us! (I know,
they're not that good, but we're still taking what we can get).

His biggest problem won't be that he omitted the money from his return but
rather that he tried to deliberately evade the tax by means such as using false
social security numbers. The IRS can be somewhat forgiving if someone
makes a mistake. They can be real tough if someone evades taxes by using illegal
means.

************************************** See what's free at http://www.aol.com.

[Non-text portions of this message have been removed]

#2

In Michigan, he's totally boned. Michigan will not allow gambling
loss deductions to offset winnings, so the state Tax Man will be
waiting for his $100,000+ share of that pie, plus penalties. This
state is so broke that they're not about to give anybody a break,
especially someone who was so obvious in his zeal to avoid taxes
completely.

Here's an example of how they don't mess around in this state. Our
Governor raised the cigarette taxes stupendously, and now I see gas
stations advertising big name brands for nearly $50 per carton. Some
folks started ordering them from online stores to avoid that tax.
The state got wind of it and subpoenaed records from every tobacco
website they could find, then sent tax bills to the tune of about $20
per carton to the consumers that they found in those records. I've
also heard stories of patrolmen pulling over Michigan vehicles coming
out of Indiana on some pretext, then searching the cars thoroughly
looking for "bootleg" cigarettes.

- Brian in MI

In a message dated 5/28/2007 9:20:42 A.M. Central Daylight Time,
b.glazer@... writes:

I hope the IRS strikes a deal with him for some kind of decent tax
settlement, perhaps using casino records, which will likely

document a loss for him

unless he knows what he's doing. We wouldn't want to have the

govt. "take out"

one of the players who keeps the good games alive for all of us!

(I know,

they're not that good, but we're still taking what we can get).

His biggest problem won't be that he omitted the money from his

return but

rather that he tried to deliberately evade the tax by means such as

using false

social security numbers. The IRS can be somewhat forgiving if

someone

makes a mistake. They can be real tough if someone evades taxes by

using illegal

means.

************************************** See what's free at

http://www.aol.com.

···

--- In vpFREE@yahoogroups.com, vp1040@... wrote:

[Non-text portions of this message have been removed]

#3

Um, can we get a link to the article maybe?

···

On 5/28/07, marksalot300 <Marksalot300@aol.com> wrote:

  In Michigan, he's totally boned. Michigan will not allow gambling
loss deductions to offset winnings, so the state Tax Man will be
waiting for his $100,000+ share of that pie, plus penalties. This
state is so broke that they're not about to give anybody a break,
especially someone who was so obvious in his zeal to avoid taxes
completely.

Here's an example of how they don't mess around in this state. Our
Governor raised the cigarette taxes stupendously, and now I see gas
stations advertising big name brands for nearly $50 per carton. Some
folks started ordering them from online stores to avoid that tax.
The state got wind of it and subpoenaed records from every tobacco
website they could find, then sent tax bills to the tune of about $20
per carton to the consumers that they found in those records. I've
also heard stories of patrolmen pulling over Michigan vehicles coming
out of Indiana on some pretext, then searching the cars thoroughly
looking for "bootleg" cigarettes.

- Brian in MI

--- In vpFREE@yahoogroups.com <vpFREE%40yahoogroups.com>, vp1040@...
wrote:
>
>
> In a message dated 5/28/2007 9:20:42 A.M. Central Daylight Time,
> b.glazer@... writes:
>
> I hope the IRS strikes a deal with him for some kind of decent tax
> settlement, perhaps using casino records, which will likely
document a loss for him
> unless he knows what he's doing. We wouldn't want to have the
govt. "take out"
> one of the players who keeps the good games alive for all of us!
(I know,
> they're not that good, but we're still taking what we can get).
>
>
>
> His biggest problem won't be that he omitted the money from his
return but
> rather that he tried to deliberately evade the tax by means such as
using false
> social security numbers. The IRS can be somewhat forgiving if
someone
> makes a mistake. They can be real tough if someone evades taxes by
using illegal
> means.
>
>
>
> ************************************** See what's free at
http://www.aol.com.
>
>
> [Non-text portions of this message have been removed]
>

[Non-text portions of this message have been removed]

#4

Hey there marks...

I have a friend that claims he files as a professional gambler in
Ohio. His state has a similar law, no deductions against W2Gs. An
exception is made, according to him, if your a pro. He also can deduct
expenses. Again, I don't do his taxes and have never seen his return.
You know the old story; Believe 1/2 of what you see and none of what
you hear, or something like that.

Cheers...
.
.

···

--- In vpFREE@yahoogroups.com, "marksalot300" <Marksalot300@...> wrote:

In Michigan, he's totally boned. Michigan will not allow gambling
loss deductions to offset winnings, so the state Tax Man will be
waiting for his $100,000+ share of that pie, plus penalties. This
state is so broke that they're not about to give anybody a break,
especially someone who was so obvious in his zeal to avoid taxes
completely.

#5

It is one thing to make a deal to someone who tries to pay their taxes due and fill out the forms but keeps poor records -these people deserve help but for someone who deliberately defrauds the government deserves to pay all taxes, penalties, and to serve any time the judge gives him. It would of course help for everyone to remember that all winnigns are taxeable, whether they require paperwork or not, and that losses to the extent of winnigns may be deducted if you itemize. I have had winning and losing years and reporting everything to my accountant (including slot club win/loss and promotion/tournament prizes received) has always allowed me to be as accurate as possible. There are so many ways to minimize taxes that anyone who is dishonest is foolish. A good but honest accountant is the best place to start to make sure that all your income and deductions are accurate and that your tax burden is legally minimized.

vp1040@aol.com wrote:
In a message dated 5/28/2007 9:20:42 A.M. Central Daylight Time,
b.glazer@att.net writes:

I hope the IRS strikes a deal with him for some kind of decent tax
settlement, perhaps using casino records, which will likely document a loss for him
unless he knows what he's doing. We wouldn't want to have the govt. "take out"
one of the players who keeps the good games alive for all of us! (I know,
they're not that good, but we're still taking what we can get).

His biggest problem won't be that he omitted the money from his return but
rather that he tried to deliberately evade the tax by means such as using false
social security numbers. The IRS can be somewhat forgiving if someone
makes a mistake. They can be real tough if someone evades taxes by using illegal
means.

************************************** See what's free at http://www.aol.com.

[Non-text portions of this message have been removed]

···

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[Non-text portions of this message have been removed]

#6

--- In vpFREE@yahoogroups.com, "whitejeeps" <whitejeeps@...> wrote:

I have a friend that claims he files as a professional gambler in

Ohio. His state has a similar law, no deductions against W2Gs. An
exception is made, according to him, if your a pro. He also can
deduct expenses. > Cheers...
...........................................................
In Michigan, he's totally boned. Michigan will not allow gambling
loss deductions to offset winnings, so the state Tax Man will be
waiting for his $100,000+ share of that pie, plus penalties. This
state is so broke that they're not about to give anybody a break.

REPLY: During the Greektown Casino (Detroit, MI) all-too-brief
offering of positive VP + good CB, I met an Ohio resident (possibly
the same guy) who said that he used this fully legal (or should be
fully legal) Schedule C method for squaring his Ohio income tax
obligation with reality. Of course, filing a Schedule C as a
professional gambler invites an IRS audit, but he said that he hadn't
had that pleasure yet.

PS: "Broke" understates the gravity of Michigan's current financial
situation. If you live elsewhere, consider the possibility that
these economic circumstances will be coming to your state -- and
especially your state's housing market -- ere long.

The GMan

···

--- In vpFREE@yahoogroups.com, "marksalot300" <Marksalot300@> wrote:

#7

Speaking of high-tax states which don't allow deductions. You CAN avoid this by filing Federal Schedule C as a professional and that carries over to the state return. But, of course, you have to "prove" to the IRS, if you are audited, or satisfy them that you really are a professional and that can be difficult if you don't fit the requirements at every level: time, earnings, expertise, etc.

···

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