Celebrity Poker Games Played Out in Front of the IRS

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The recent stories about certain celebrities who won or lost large sums in Hollywood big games raised some interesting issues. In one story a trustee in bankruptcy has brought “claw back” actions against players who won very large sums from a guy who was convicted of embezzlement. The trustee asserts in his lawsuits that the money won is the property of the bankruptcy estate of the company that was the victim of the embezzlement. The underlying facts are a bit more complex but some interesting questions are:

First, did the players win the sums claimed in the lawsuits?

Second, if they did win, did they keep records of wins and losses so that they could and did accurately report their gambling income for state and federal tax purposes?

Please see full article below for more information.

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Published In: Bankruptcy Updates, General Business Updates, Criminal Law Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sanford Millar, Law Offices of Sanford I. Millar | Attorney Advertising

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