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February 8, 2007
Neteller Sucks, Part 3
Neteller released this statement today affirming their commitment to paying out American customers. The FBI agent turned out to be at least somewhat correct (about the seizure, I have no idea about Kylie Minogue) and they claim total assets stolen to be under $55 million, which is low enough that I'm still hopeful about getting mine back. They're definitely a strong enough company financially to eat that if they really have to.
The interesting part of the release is:
The Group is, under advice of its legal advisers, commencing production of documents and intends to cooperate with the USAO in its investigation.
All of us who actually paid our taxes should now be patting ourselves on the back. Those of you who didn't might want to speak to a tax attorney for advice immediately.
Posted by themaroon at February 8, 2007 7:30 PM
Comments
If we assume neteller turns over our transaction history to USAO, how then are they able to determine what earnings you have had for tax purposes. For example, say I make a Neteller deposit of $300 and put that on PokerStars. Now say I sit with $150 at two tables and lose $150 at one table and double my money at the other. I end up putting the $300 back on Neteller, but I have had $150 in taxable income right? What if I just broke even at the two tables and put the $300 back into Neteller? Neteller transactions would look the same but the tax treatment is different. It seems to me, you cannot accurately determine someone's taxable income solely by reviewing their Neteller transactions. At the end of the day, all they can really do is calculate net profits and demand tax on that amount. In that case, your winnings are offset by your losses, which, of course, is not how taxes are calculated. Am I right, or am I overlooking something? It is always possible that I have no idea what I am talking about.
Thanks.
Posted by: Joe at February 9, 2007 11:01 AM
"At the end of the day, all they can really do is calculate net profits and demand tax on that amount."
Net profits alone will sink many a poker player. I'm sure there are countless players who have a great deal of money while paying no taxes at all.
Posted by: gobucksindy at February 9, 2007 3:24 PM
Actually, at the end of the day they can do a hell of a lot more than that. For one they can track your Neteller account balance on each and every day of its existence. Apparently if its over $10k you are supposed to have claimed it, I know of nobody who has done that.
They could make sure that you aren't simply netting your wins as well, if you don't file as a professional as I do.
Posted by: Matthew Maroon at February 9, 2007 5:04 PM
Matt,
Lets assume the person's Neteller account balance never exceeded $10K (as mine hasn't).
How is it possible, assuming one has access to all of a person's Neteller transactions, to determine what amounts can be attributable to taxable income?
I have printed my Neteller transaction history and I am not able to calculate a taxable income amount accruately. How can the IRS make sure I am not netting my wins if I can't do it to calculate my own taxable income?
Thanks.
Posted by: Joe at February 13, 2007 11:46 AM