Busted by IRS now i owe back taxes on winnings

Betfair would never produce the 300-1 requirement for a signer, unless I'm mistaken and they market exotics. I thought Betfair was just a market exchange on individual runners? Could be wrong since I don't use them.

Does anyone who actually beats the game pay taxes? I mean, anyone with that much ability surely can dig up some relatives abroad and bet with Betfair (or others). WTF, is this as 3rd world country?

It's not even actually beating the game, if I end up with 40 signers over a year let's say for 60K and have lost 60K, the adjustment to AGI means that even though I don't have any profits, I've lost money on taxes for standard exemption allowances, child tax credits, college tuition deductions, itemized deduction allowances. So many deductions are tied to your AGI, and that is just royally f'd up that a person gets penalized for having W2-G income but not any actual winnings.

[randallscott35]

You will definitely pay a penalty. Not declaring is a problem. It doesn't matter that you can show the losses. You must declare the signers. That is why they take your social security info...Remember, winnings can put you into a different tax bracket which is why even if you can show losses to that amount, your gross income will result in higher taxes for the rest of your income.

[jms62]

Problem with offshore is that they have limits on payments and you have to deal with cashing a check from a known offshore book. Banks have to report this stuff nowadays. I used to love the rebates at Pinnacle and Ibetx until they tossed out US accounts. My best play was laying money on Odds on favorites to lose...