I'm down about $12000 lifetime in sports betting so it doesn't affect me because i'm loser at this game. But i'm curious about the people who do win at it.
I always hear people say that if you make a deposit or withdraw, always keep it below for $10,000. Some people mention this is for tax reasons. I know if you do a $10,000 transaction, you have to file a CRT. But some people mention that its only for cash deposits and not check or bank wires etc...
The majority of people lose in gambling but to those small percent that do win, is that the reason why they don't take withdraws for over $10,000 because the majority of people don't pay taxes on gambling winnings? I even hear some people respond to those threads such as of course they don't pay taxes on gambling and lot of people laugh at it. I know the government loses a lot of money because the majority of people who gamble don't pay taxes as said in the news and in that movie Two For the Money.
I read that the chance of getting audited is 1 percent or even less. Well what i don't get is why is anyone taking this chance? I mean i know people don't want to give money to the government since there isn't a W2 form or what not but isn't that a big risk since i heard tons of people get fined and go to jail for it? I know if you win very small, you don't even need to file if its not a certain amount. I think that was $5450 i heard. Well i know guys like Fishhead who is a pro and i think he said he makes $100K at least a year, would obviously have to pay taxes on it.
Are there people who don't have any job besides gambling going to be caught no matter what as oppose to someone who has a job and gambles recreationally and have money deposited into their bank account? I see many people mention that since they have a job and have money coming into their bank account from their job, then checks or money coming from their sportsbetting accounts won't get noticed as someone who has no job besides gambling. Is this true?
But if you pay taxes on it, doesn't it not matter how much you deposit or withdraw at once and you wouldn't care about a 10k transaction? Assuming you pay taxes on it, someone can just request the whole $15000 instead of $3000 every time right? I think its very risky if someone did this but I assume most people don't pay taxes. Because i see so many people who say they make a withdraw and very few people say they withdraw more than 10K at a time and i would just assume they do this because they don't want the government to know?