The statute of limitations on a return is 3 years from the due date or the date you file it, whichever is later. Thus, you filed your 2002 return by April 15, 2003, you have until April 15, 2006 to sweat. A big caveat, the presence of fraud can keep the statute open. One really has to be a bad boy to get the IRS down that trail!
My brother in law did not file for 2 years, our of pure laziness. He did not get prison time, he just had a shit load of penalties and is still paying today.
I feel people make mistakes, or don't know the law. If you do you best and do whats right, and make an attempt to pay taxes, you will be fine. I never claimed any winnings, because I was ignorant on the subject. I have since learned and much as I could and got in touch with a CPA to help with this years filings.
Over all, do the right thing, or at least make an attempt and you will be fine<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by STRUT888/FISHHEAD:
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Am i tight or not?:
What if you dont file a return? what is the statue of limitations?<HR></BLOCKQUOTE>
5-10 years.......prison.<HR></BLOCKQUOTE>
I feel people make mistakes, or don't know the law. If you do you best and do whats right, and make an attempt to pay taxes, you will be fine. I never claimed any winnings, because I was ignorant on the subject. I have since learned and much as I could and got in touch with a CPA to help with this years filings.
Over all, do the right thing, or at least make an attempt and you will be fine<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by STRUT888/FISHHEAD:
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Am i tight or not?:
What if you dont file a return? what is the statue of limitations?<HR></BLOCKQUOTE>
5-10 years.......prison.<HR></BLOCKQUOTE>
I agree with Jdog and others, the burden of proof is indeed on the taxpayer. They don't have to prove anything, you have to show where you paid the taxes on the money. Also you better know where it came from and why/how you got it.
When I was a kid (20's) I got "audited" I guess you'd call it. All it was I got a package stating I recieved a check for 15k that I did not pay taxes on. I didn't know I had to back then. I didn't have any money so I basically admitted I was wrong and paid them a certain amount every month until I paid it off. No one visited me or anything, all done over the mail.
If you win pay your taxes! Not worth in the longrun the little you will save by not paying. Do this and you will be fine IMO.
2 things
First, once you denounce your citzenship you are obligated to pay taxes for the next 10 years. (ouch! but its true)
Second, there is NO statue of limitations in tax fraud cases. Only for IRS audits which is 3 years. Under reporting can be cause for tax fraud and they can go back to when Moby Dick was a minnow.
First, once you denounce your citzenship you are obligated to pay taxes for the next 10 years. (ouch! but its true)
Second, there is NO statue of limitations in tax fraud cases. Only for IRS audits which is 3 years. Under reporting can be cause for tax fraud and they can go back to when Moby Dick was a minnow.
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by kerry:
Show them withdraws to Neteller for 97k or higher, take the position you are in the trade or business of gambling, and thus the income and losses net on Schedule C to zero. Explain that since it was a loss you were not aware that you still had to complete a Schedule C. Note, if not a trade or business, the income is reported on page one, and the losses are a misc. itemized deduction on Schedule A suject to the 2% of AGI limitation. This is a very harsh result, to say the least!<HR></BLOCKQUOTE>
Gambling losses are NOT subject to the 2% AGI limitation. You can deduct losses dollar for dollar in the same year up to the total amount won.
Show them withdraws to Neteller for 97k or higher, take the position you are in the trade or business of gambling, and thus the income and losses net on Schedule C to zero. Explain that since it was a loss you were not aware that you still had to complete a Schedule C. Note, if not a trade or business, the income is reported on page one, and the losses are a misc. itemized deduction on Schedule A suject to the 2% of AGI limitation. This is a very harsh result, to say the least!<HR></BLOCKQUOTE>
Gambling losses are NOT subject to the 2% AGI limitation. You can deduct losses dollar for dollar in the same year up to the total amount won.
I don't know how much money you are making Strutt, but if it is substantial. I would suggest openning an offshore bank account.But you need to make sure it is a solid bank. Find a good tax Attorney(I have one) they can make suggestions on banks especially if they handle corporate tax. THis helps to avoid a couple of issues. You can decide whether to report the income or not, it still would be fraud but they have no way to follow it. Second and maybe the most important point with the current Legislation moving forward, it becomes very gray as to whether your gambling transactions are taking place in the US since no US banking institutions are involved.
Justathought.
Justathought.
