With banking matters all over the place these days, the IRS reportedly investigating Russ Hamilton, and Barney Frank putting together a bill that would simply strike down the UIGEA as if it never happened, I gotta think, well … I really don\’t know what to think. Though it seems major shifts are happening, global-economic finance is admittedly a little beyond my ken. But I\’m trying to figure it out, and so far I\’ve concluded that banks are clearly important, and anyone who handles the transfer of billions of imaginary dollars has major issues to attend to.
Brilliant, I know.
And actually, not even billions … just $10,000 or more. Apparently a new IRS rule has gone into effect that requires online poker players to treat their online accounts — PokerStars, Full Tilt, et al. — as offshore foreign bank accounts.
Yeow, that\’s different. Sources who were winning players online tell me nothing more than a WG-2 was necessary before. Again, I\’m not really sure what that means (or what enforcement mechanisms are in place) but do I know this change theoretically affects lots and lots of people and probably at least a few billion dollars. If I\’m reading this tax expert right, basically, if all your money in all your accounts added up to $10,000 or more at any point in 2008, you have to file a special form (TD F 90-22.1, which goes to the Dept. of the Treasury, not the IRS) for these accounts, and the fine for not doing so is either $100,000 or half your bankroll, whichever is greater.
That sounds pretty tough. But maybe this is just what comes with the territory as G-men set up a framework for how these online piggy banks, er, poker sites have to work in the future? No word yet on whether or not you\’ll ever be able to pay your taxes in PokerStars W$/T$ or Lindens.
