Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

Don't bet the house by failing to disclose your online casino account

January 30, 2009

Gambling tax maven Russ Fox has important news for the online gamblers:

Casinos in the United States fall under the same currency requirements as banks and other financial institutions. Congress and the IRS recognized that money laundering and other currency shenanigans could occur at a casino. I've always felt that one day the Treasury Department would consider offshore (foreign) online casino to be a foreign financial institution and subject to reporting. Well, that day is here.
Every year I've sent an inquiry to the FBAR group at the Treasury on this subject. This year they responded that these accounts must be reported if the account value requirements were met.

To determine if you need to report your foreign financial accounts (including online casinos), determine the maximum value of each account during 2008. Add up the total. If the sum is $10,000 or more all your accounts must be reported.

Penalties for failing to disclose foreign accounts are the greater of $100,000 or half of the account value. The accounts should be reported by June 30 on Form TD F 90-22.1.

Tags: 90-22.1.FBAR.Russ Fox.