Not looking for legal advice and there is just about a .0000000001% chance of this becoming an issue, but. . .
Recently I have taken up playing in Texas Hold-em tournaments. I’m not doing too badly so far. In about 20 tournaments I’m perhaps $100-150 down been in the money three times and won a free entry to another one. Cheap enough entertainment.
As part of the whole thing I watch a lot of the European Poker Tour on YouTube. Of course I fantasize about going over there and kicking ass. Going to Europe happens every year. Getting in a tournament is unlikely however and actually winning any money is an extreme longshot. But, hey, a guys gotta have his dreams.
If I were to go to Europe and take part in a tournament and win, could I put the money in a European bank and get out of paying US income tax on it? I know that’s illegal (the income tax form asks if you have any foreign bank accounts so you’d be breaking the law right off the bat) and like I said earlier this isn’t likely to ever be an issue. I just want to know if it is a reasonable possibility.
So I win 40,000 euros. I stop by in Switzerland, for instance, and put it in the bank. Does the US get informed of my winnings? Do the Swiss tell them about my account? What taxes would I pay in Europe? If it matters, let’s say I’m playing in Monaco.
Anyone out there know anything about this?