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Old 08-01-07, 02:08 PM
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Kurn Kurn is offline
cha'DIch of the Poker Gods
 
Join Date: Feb 2005
Location: Warwick, RI
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Kurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep PointsKurn User has between 2000 and 2499 Rep Points
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Getting $1,000 from NETeller will not significantly increase your probability of being audited. Like most govt agencies, the IRS is understaffed and overworked.

The good news on your non-payment is that you haven't made enough money to really piss them off if they catch you. They'll just send you a bill (including interest and penalties) and you can either pay it off immediately, get up to a 180 day extension to pay in full, or set up a payment plan. With a payment plan, you can basically take as long as is comfortable to pay (interest keeps building up of course) but you must agree to pay all future taxes in full when due or risk more stringent action (attachment of pay or bank accounts). Owing what you probably owe, criminal prosecution is rarely even threatened.

Thus, you can just start paying taxes on your winnings next year and hope they never catch you, or download the prior years' tax returns and file them now. The real downside of hoping they don't catch you is if they do, the interest can be crushing.

Clearly, the legally correct thing to do is to file the back returns now.
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