What happens when you make a few bets and win? Well, besides ending up with more money in your pocket, you have something else to put on your tax return; gambling winnings are taxable in the United States and go on line 21 (Other Income) of Form 1040.
Many gamblers forget to tell their accountant about their winnings. The problems begin when you get caught as you can find yourself facing tax evasion charges. Cyrus Bland, of Campbellsville, KY was convicted on Thursday of filing false income tax returns. He played craps on riverboats in Indiana and came up a big winner — to the tune of nearly $500,000 in 1998 and almost $450,000 in 1999.
But he didn’t include his winnings on his tax return. And the IRS found out, and he’s looking at a possible six years in prison and a fine of $500,000. Oh, he has to pay the back taxes, interest, and penalties, too.
Sure, the tax code isn’t fair for gamblers. But I bet Mr. Bland is wishing he had paid the taxes on his winnings.
SNAKE EYES
Russ Fox of Taxable Talk tells us about a man whose hot streak on the riverboats went ice-cold when he…
SNAKE EYES
Russ Fox of Taxable Talk tells us about a man whose hot streak on the riverboats went ice-cold when he…
SNAKE EYES
Russ Fox of Taxable Talk tells us about a man whose hot streak on the riverboats went ice-cold when he…
SNAKE EYES
Russ Fox of Taxable Talk tells us about a man whose hot streak on the riverboats went ice-cold when he…