This problem with the IPT could be many things, and everyone is just speculating, (me too) But I love all those that say it's so easy to just write checks for 3,000,000. Truth is, the government is already got a spotlight on KT, when he starts putting up 3 million in prize funds for pool tournaments you can bet the IRS and the FTC is all over him, and probably saying WTF is this?
Not only that you have payments being made to people from multiple countries and the IRS wants it's money, they want 30% withheld, but some countries have treaties with the US that protects foreigners from having to pay the 30% withholding to the IRS. This all has to be handled by the IPT, and one wrong move by the IPT and the IRS swoops in, KT does not want to jeopardize his other ventures with the IPT. He also has to play it right and keep his personal money and other ventures completely separate. This makes for more problems when moving money around accounts, and as soon as you start moving large amounts of money from account a to account b the scrutiny becomes even greater. The bigger the prize funds, more eyes looking for one small mistake. (remember KT kinda thumbed his nose at the FTC, they don't take kindly to that)
Honestly nobody knows the real reasons, (outside of KT's lawyers) but just writing a bunch of checks, computers or not is not as simple as it looks when you want the IPT to be a separate entity and want to show loses for 2006, all this while trying to keep the feds from having anything at all to bust your balls for. KT does not just open his check book and deposit 3 mil in the IPT accounts, he wants to be sure the profits from one company are used properly to maximize his business, or his personal wealth. It's all about covering your arse, I have worked in companies with multiple business's that use one company as a loss to offset the others gain, there are lots of creative legal ways to maximize your financial stake.
It's a real problem, and if the IPT made any wrong steps in the last payout, you can be sure the IRS made notes and visits. I really believe the hold up is tax withholding issues, and proper accounting practices. With tournament winnings as large as 3 mil, there are issues most are not aware of. The government will check over KT's books and see where the money comes from and where it goes with a fine tooth comb. So he is making damn sure all his i are dotted and t's are crossed.
Of course it could aslo be that he is running out of money he wants to throw at the IPT, and thought he could get more sponsors by now.
I'm leaning toward the tax/accounting issues, but running out of money he wants to throw at the IPT is a very close 2nd.
Whatever it is, it's certainly not long enough to really make me question the IPT, but I do feel bad for the players that made plans for that money, been there done that. You have to know at any point this can end, thats just life and you need to be ready if it happens, doesn't mean it wasn't worth trying and certainly was never a scam.
Not only that you have payments being made to people from multiple countries and the IRS wants it's money, they want 30% withheld, but some countries have treaties with the US that protects foreigners from having to pay the 30% withholding to the IRS. This all has to be handled by the IPT, and one wrong move by the IPT and the IRS swoops in, KT does not want to jeopardize his other ventures with the IPT. He also has to play it right and keep his personal money and other ventures completely separate. This makes for more problems when moving money around accounts, and as soon as you start moving large amounts of money from account a to account b the scrutiny becomes even greater. The bigger the prize funds, more eyes looking for one small mistake. (remember KT kinda thumbed his nose at the FTC, they don't take kindly to that)
Honestly nobody knows the real reasons, (outside of KT's lawyers) but just writing a bunch of checks, computers or not is not as simple as it looks when you want the IPT to be a separate entity and want to show loses for 2006, all this while trying to keep the feds from having anything at all to bust your balls for. KT does not just open his check book and deposit 3 mil in the IPT accounts, he wants to be sure the profits from one company are used properly to maximize his business, or his personal wealth. It's all about covering your arse, I have worked in companies with multiple business's that use one company as a loss to offset the others gain, there are lots of creative legal ways to maximize your financial stake.
It's a real problem, and if the IPT made any wrong steps in the last payout, you can be sure the IRS made notes and visits. I really believe the hold up is tax withholding issues, and proper accounting practices. With tournament winnings as large as 3 mil, there are issues most are not aware of. The government will check over KT's books and see where the money comes from and where it goes with a fine tooth comb. So he is making damn sure all his i are dotted and t's are crossed.
Of course it could aslo be that he is running out of money he wants to throw at the IPT, and thought he could get more sponsors by now.
I'm leaning toward the tax/accounting issues, but running out of money he wants to throw at the IPT is a very close 2nd.
Whatever it is, it's certainly not long enough to really make me question the IPT, but I do feel bad for the players that made plans for that money, been there done that. You have to know at any point this can end, thats just life and you need to be ready if it happens, doesn't mean it wasn't worth trying and certainly was never a scam.
