As the effects of Black Friday are still dragging out, four months later, and two months since Full Tilt Poker’s license got suspended by the AGCC, most poker players in the US are now sure that they will not see any of their funds being returned, especially from Full Tilt Poker.
After everything that has been upturned by the indictments and the cases against Full Tilt Poker, it really does seem that they do not have the funds necessary to pay back their players on top of which the Internal Revenue Service is looking for a piece of the already lost cake.
According to the rules and regulations of the American Treasury (1.451-2), those players who have received funds into their accounts after winning any game or tournament, are taxable, in the sense that those funds “which the taxpayer could have access to if notice to withdraw had been given” are called “constructive” receipts – and hence they are taxable.
Now if a player is liable to pay taxes for every transaction that is carried out then it might be a problem, since it has been argued that Full Tilt Poker was not accessible for a long time for players to withdraw all of their funds at one go. But, another argument states that it would be extremely difficult to say that prior to April 15 Full Tilt Poker was not accessible whatever the amount of funds may be. IRS is going to be inspecting into these arguments in the near future.
Something called a “Constructive Loss or Casualty Loss” is applicable only if Full Tilt Poker officially announces that they will not be repaying their players. Hence, the IRS will not be allowing any such arguments to be put forth by the players for the year 2011, especially since Full Tilt Poker’s alternate websites are still functional.
In the proposals that have been laid out in Capitol Hill, there is a mention regarding individual player tax reports to be sent to the IRS through these websites and if a players has not been paying the taxes before Black Friday, then he or she cannot claim it back from Full Tilt Poker. With all these additional costs and hassles related to receiving their money back, players are most likely going to back out and not want their money in return. They would just prefer waiting for the American Government to announce their decision on the fate of online poker.