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Hi guys, this just happened, I won ~$10000 on Bovada slots (Good girl bad girl) and i'm paranoid about tax issues. I really don't want to pay as I feel like something like this shouldn't be taxable to begin with. All it shows is a lack of understanding of EV on the IRS part, or greed, or both.
Any advices?

I advise you to pay your taxes. I'm guessing that a judge will not be sympathetic to the 'I really didn't want to pay' defense.
However, should it work, let me know, because it turns out that I really don't want to pay my taxes either. What a coincidence! We have so much in common.

Hi guys, this just happened, I won ~$10000 on Bovada slots (Good girl bad girl) and i'm paranoid about tax issues. I really don't want to pay as I feel like something like this shouldn't be taxable to begin with. All it shows is a lack of understanding of EV on the IRS part, or greed, or both.
Any advices?

my advice would be; don't ask questions on a public forum on how to commit fraud.

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If you would like to not pay taxes then I would suggest losing it all back to them. problem solved.

But guys, this is online gambling. It's illegal to begin with, if I do report it that's like saying 'hey look at me, I gambled online and I knew it was illegal, come confiscate my $10k'
also bovada stated in their terms and conditions that they do not share information with government agencies. so how would they even know I won so much?
I have also previously cashed out small amounts without being asked where the money came from. What would make 10k different?

There are certainly no federal laws against online gambling. Are you in a state that specifically makes online gambling a felony? Are there any other than WA that do?
Regardless, I don't think that the 'my earnings were illegal and therefore not taxable' defense will be much more successful than the 'I really didn't want to pay' defense. But then, I'm no lawyer. It certainly didn't work for Al Capone, though. Also, money earned through illegal means is taxable (I think that there's even a separate line item for it on the tax form?) However, these are not illegal. Just report them as gambling winnings.
Your $10k will not get confiscated. You will just pay taxes on your winnings (just like everyone else has to) and keep the rest (just like everyone else gets to). Don't forget to write off any losses. Get an accountant to do your taxes if you are confused.
As for how they will find out...
1. Just because they don't provide info to government agencies NOW doesn't mean that they won't at some point in the future through some deal with the US government. This is what happened with the Swiss banks. Perhaps they would offer some amnesty to people who 'fess up, perhaps not.

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2. If $10k is a significant amount of money (compared to your usual income) and you get audited you are f***ed. It is hard to hide $10k when you make $40k per year.
3. Large transactions tend to get reported, whether you know about it or not. CTRs, SARs, etc. Your bank has an obligation to do this.
You gambled. You won. Pay your taxes and be happy that you are ahead, which is more than 99.999% of gamblers can say. If you want to gamble more, do it against a casino, not the IRS. Filing a fraudulent return is serious business.

There are certainly no federal laws against online gambling. Are you in a state that specifically makes online gambling a felony? Are there any other than WA that do?
Regardless, I don't think that the 'my earnings were illegal and therefore not taxable' defense will be much more successful than the 'I really didn't want to pay' defense. But then, I'm no lawyer. It certainly didn't work for Al Capone, though. Also, money earned through illegal means is taxable (I think that there's even a separate line item for it on the tax form?) However, these are not illegal. Just report them as gambling winnings.
Your $10k will not get confiscated. You will just pay taxes on your winnings (just like everyone else has to) and keep the rest (just like everyone else gets to). Don't forget to write off any losses. Get an accountant to do your taxes if you are confused.
As for how they will find out...
1. Just because they don't provide info to government agencies NOW doesn't mean that they won't at some point in the future through some deal with the US government. This is what happened with the Swiss banks. Perhaps they would offer some amnesty to people who 'fess up, perhaps not.
2. If $10k is a significant amount of money (compared to your usual income) and you get audited you are f***ed. It is hard to hide $10k when you make $40k per year.
3. Large transactions tend to get reported, whether you know about it or not. CTRs, SARs, etc. Your bank has an obligation to do this.
You gambled. You won. Pay your taxes and be happy that you are ahead, which is more than 99.999% of gamblers can say. If you want to gamble more, do it against a casino, not the IRS. Filing a fraudulent return is serious business.

Urgh... I make $0 a year outside of gambling. Last year I applied for welfare and didn't get it and i was pissed enough as it is. Now they want me to pay for other people's welfare? no thanks...
And how much taxes are we talking about? 10%? 30%? 50?% 90%?

Urgh... I make $0 a year outside of gambling. Last year I applied for welfare and didn't get it and i was pissed enough as it is. Now they want me to pay for other people's welfare? no thanks...
And how much taxes are we talking about? 10%? 30%? 50?% 90%?

If at the end of the year your only income is 10k then it would be 10-15% but then you would qualify for EIC so you would probably get most of that back.

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If at the end of the year your only income is 10k then it would be 10-15% but then you would qualify for EIC so you would probably get most of that back.

If their earned income is $0, they will not qualify for the EITC.
But, if this is your only income, you won't owe anything because you get a standard deduction of $6200 and a personal exemption of $3950 (assuming you are single and nobody else can claim you as a dependent).

But guys, this is online gambling. It's illegal to begin with, if I do report it that's like saying 'hey look at me, I gambled online and I knew it was illegal, come confiscate my $10k'
also bovada stated in their terms and conditions that they do not share information with government agencies. so how would they even know I won so much?
I have also previously cashed out small amounts without being asked where the money came from. What would make 10k different?

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If you want to cheat on your taxes, then go ahead. But don't come onto a forum with your absurd rationalizations.

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