An interesting question

[rackmsuckr]

I wonder if we will get tax forms back at the end of the year on money earned/won (as listed on the IPT website) or the actual amount paid out to us???

For instance, in my case, I was paid $2000. BUT they could give me back a statement that claims that I won another $5K or even $13K, even though it hasn't been paid out yet. Then of course, the same for Mike Z.

 

[sixpack]

I wonder if we will get tax forms back at the end of the year on money earned/won (as listed on the IPT website) or the actual amount paid out to us???

For instance, in my case, I was paid $2000. BUT they could give me back a statement that claims that I won another $5K or even $13K, even though it hasn't been paid out yet. Then of course, the same for Mike Z.

They could if they want to go to jail. That would be tax fraud.

Even though the IPT can do all kinds of creative accounting things in their books, claiming that they paid out money that they didn't pay out will land them in the slammer.

Cheers,
RC

 

[ribdoner]

I wonder if we will get tax forms back at the end of the year on money earned/won (as listed on the IPT website) or the actual amount paid out to us???

For instance, in my case, I was paid $2000. BUT they could give me back a statement that claims that I won another $5K or even $13K, even though it hasn't been paid out yet. Then of course, the same for Mike Z.

It's interesting you posted this because I pondered similiar thoughts just a while ago.

I ASS--U--ME--that the extent of your tax liability would be actual $ recvd.

If stock or options are part of your compensation package it can become somewhat complex.

There are several who post here that have more expertise and I'm sure they'll expound with a greater degree of authority.

GREAT QUESTION!

 

[VonRhett]

Ehhh, no. You are only responsible for claiming income & paying taxes on monies received, not promised.

Now, KT could report that he owes $3M for P&L purposes, though he hasn't paid it yet (sorry to state the obvious). He could not, however, file a 1099 stating that he paid that to you. Since everyone was "guaranteed" *some* amount, these are not unpaid prizes. They are unrealized compensation.

These payments to you are considered "Nonemployee compensation", and the IPT can only report what has been actually paid out, now what is owed or what KT promised to pay.

Though it is looking bleak, I can only hope that you do end up paying taxes on the Reno Tourny. (That could only happen if the check is received and actually clears)
-von

 

[memikey]

If any overseas players or others are in a position of having taken it on trust that IPT have forwarded any amounts that they deducted at source from their winnings to the tax authorities in settlement of that players personal tax liabilty perhaps have even more to potentially worry about

 

[Da Poet]

I wonder if we will get tax forms back at the end of the year on money earned/won (as listed on the IPT website) or the actual amount paid out to us???

For instance, in my case, I was paid $2000. BUT they could give me back a statement that claims that I won another $5K or even $13K, even though it hasn't been paid out yet. Then of course, the same for Mike Z.

That would be tax evasion. They cannot claim they have paid you more than they already have.

 

[Da Poet]

Aye Chihuahua, that was a lot of posts!

Goodnight everyone!