Is online gambling illegal in USA and can the IRS make u pay taxes on large winnings?

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Is online gambling illegal in USA and can the IRS make u pay taxes on large winnings?

2007-05-18 08:38:42 · 2 answers · asked by Georgia Peach 1 in Business & Finance ➔ Personal Finance

2 answers

Yes and Yes. Income is taxed "from whatever source derived" illegal or legal.

2007-05-18 08:45:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋

Yes and yes.

Have you heard of Al Capone, the Chicago gangster from about 80 years ago? He was not busted any of his illegal whiskey sales, bribery, and other activitities. He was bust for evading taxes on that income.

2007-05-18 08:43:40 · answer #2 · answered by garyg7 7 · 1⤊ 0⤋