In light of a US Government crackdown affecting Internet poker's two biggest rooms, PokerStars and Full Tilt Poker, Gambling911.com recently spoke to a tax expert who questioned what might happen if some of the online poker players caught up in the recent freeze of $40 million were found to have had $10,000 or more in their accounts at any given time (or were paid out in excess of this amount over the past year) and failed to file a 90-22.1.

"Our firm represents a professional poker player who made it clear that he needs to file the 90-22.1 form," said the tax accountant, who wished not to be identified but has actually worked within the online gambling sector in the past.  

The US Attorney out of the Southern District of New York seized some $40 million in online poker funds circulating between both PokerStars and Full Tilt Poker and their customers.

"Some of these customers could end up being audited I fear," said the tax accountant.   "Everyone with more than $10k in offshore accounts should be filing."

Gambling911.com has heard rumblings that the payment processors at the center of the US Government's investigation may be ready to fully cooperate with the US Attorney's office.   All court documents related to this matter remain sealed and, as such, nobody outside the US Attorney's office knows the full extent of the investigation.

A letter sent out to one bank advised the said proceeds could be used in "money laundering" activities. 

Who Must File a 90-22.1: Each United States person who has a financial interest in or signature or other authority over any foreign financial accounts, including bank, securities, or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year, must report that relationship each calendar year by filing this report with the Department of the Treasury on or before June 30, of the succeeding year.

Jagajeet Chiba, Gambling911.com