It’s all about tax: South Korean Businessman won his case against IRS

in Casino

Who really loves gambling, all over the world, will admit that this activity is the perfect expression of fun. And that’s it! But if we think about the laws that regulate it, we can notice a lot of different realities: in some places gambling winnings aren’t taxed. There are many other tax that concern to professional gamblers, or some others gambling winnings that simply asks for a percentage of net winnings. If we move to United States will see that the reality is completely different: in the big country where all dreams can come true, gambling winnings are taxed, for non-professionals, every time a player wins, and there are deductions that can be taken on every loss. No surprise that most poker players and other gambling professionals, think that this all story is a stupid and pointless burden. Because of that tax every player have to collect information on every single bet he made during the year; after that he will submit that information to the Internal Revenue Service (IRS). And if you don’t get crazy you’ll keep playing! IRS gives the chance to all gamblers to record their net winnings and losses session by session: and by the way that’s the most common way used by gamblers to keep their records.

Unfortunately this form is not extended to foreigners: we want to talk to you about mister Sang Park, a South Korean businessman who started a big legal battle against IRS about how his gambling winnings should be taxed. Mister Park had lost thousands of dollars (but he also won some of them!) during his trips to the States, where he went to play slot machines. If we listen to what IRS said, Park had to pay taxes on every single winning spin which is crearly a heavy burden to face for every player.

But Park didn’t accept this decision, and he fought for it, or even better, he fought against it. He kept saying that he could have calculate his wins and losses session by session, just like every American gamblers. If American player are allowed to do it, whay i can’t do that? In the beginning tax courts ruled against mister Park, but the game is over only when you said it’s over! This week, a ruling from the U.S. Court of Appeals for the District of Columbia Circuit said that Park’s winnings should be taxed in the same manner used to calculate the taxes paid by American players. Now the case has been sent back to the U.S. Tax Court to make a determination of the final tax bill Park will face based on his session wins and losses. Now we only have to figure out how much money mister Park will ultimately owe. But his battle is over, and in a very nice way!