A Connecticut poker player and small business owner has pleaded guilty to one count of tax evasion, a charge that carries a maximum imprisonment of up to five years.
Even though the IRS notified Smith on multiple occasions that he was required to report all of his gambling income on his federal tax returns, Smith concealed his gambling income from his tax preparer and paid no income taxes on more than $1 million in gambling winnings,” a Department of Justice release explained.
Federal officials say Smith failed to pay $821,415 in federal income taxes for the 2012 through 2016 tax years.
Smith has been released on a $50,000 bond pending sentencing, which is scheduled for March 4, 2021. Smith has agreed to cooperate with the IRS and pay all outstanding taxes, plus interest and penalties.
According to The Hendon Mob, the world’s largest online live poker tracking database, Guy Smith’s best cash came in July of 2016 at Foxwoods.
Smith placed first in the $1,000+$100 No Limit Hold’em Championship Summer Kickoff, besting 216 other players. His victory won him $51,149. The very next month, Smith experienced his second-best cashing, a 5th place finish at the $1,100 No Limit Hold’em Re-Entry at the Seminole Hard Rock Poker Open in Hollywood, Florida. That tournament won him $37,800.
Winnings from gambling are considered taxable income, and must be reported. The IRS says Smith failed to do so.
Smith should have been well aware of his tax liabilities for his poker successes. Casinos issue IRS Form W-2G to poker players who win more than $5,000 in a tournament. Gamblers receive the tax form either on the spot or through the mail.
Comments powered by CComment