After 32 years of IRS work — and more than $100 million in resolved tax debt — I've seen just about every version of the problem you're dealing with. I'm Darrin Mish, a tax attorney in Tampa. Here's what you should know.
Fantasy sports is big business, and the IRS is beginning to clamp down on winnings. While New York seems to be the focus, fantasy winners all over the US might be in for a surprise when the noose tightens for them having to disclose their winnings on the following year’s tax returns.
FanDule and DraftKings are about to hear from the IRS. They’ll start taking a hard look at these sites and players who fail to disclose their earning may be in for a surprise. It just seems reasonable that the IRS will take a closer look when there are other federal agencies scrutinizing the new world of online gaming.
Individuals are also putting themselves at risk when they openly reveal the thousands, and sometimes millions, of dollars they’ve won. The IRS could be watching social media channels as well.
The best route to take is to be transparent and report any such earnings. Just think of it as a responsibility. Hire a tax attorney if you’re a little shy about what to do with any earnings. By staying in the loop and on the right side of tax law, you’ll benefit in both the short and long run.
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