Understanding Recreational And Professional Gambling Tax Laws
The internet has opened new frontiers in the world of gambling. It is now possible to gamble and win money without ever leaving your home. However, because most gambling websites are hosted in countries outside of the U.S., significant tax implications may arise concerning any winnings. At the law firm of Kundra & Associates, our gambling tax attorneys in Rockville, Maryland, provide experienced legal and tax advice regarding online gambling winnings.
If you are under investigation by the IRS for not reporting gambling winnings, or are concerned about how the tax laws may impact you, speak with us. Contact our Washington, D.C., tax lawyers by calling 301-637-8130 to schedule a meeting to discuss your situation.
The Foreign Account Tax Compliance Act And Gambling Proceeds
The Foreign Account Tax Compliance Act, or FATCA regulations, has a significant impact on foreign online gambling institutions and the U.S. individuals who use these services. Under FATCA, online gambling providers are treated the same as foreign banking institutions, and individuals who win at online gambling are considered to have a foreign bank account.
This means that gambling providers must provide the IRS with the names of any account holders or face a penalty of up to 30 percent of any income generated by the account. U.S. persons are required to report any income they may have earned overseas. Failure to do so may result in a fine of up to $10,000 or $50,000 for continued failure to report following a notification. Charges of tax evasion are also possible for refusing to report this type of income.
Protect Your Rights And Interests
If you or your foreign institution has received a notice from the IRS regarding gambling income reporting, it is important to contact a tax lawyer at Kundra & Associates right away. We have extensive experience handling international tax defense cases, and we work hard to help protect your valuable interests.
For International Gambling Tax Advice, Contact A Washington, D.C., Lawyer
Do not wait for the IRS to come to you. Take a proactive approach to getting international gambling tax advice. Contact our Maryland gambling tax attorneys online.