EwalletXpress

rudy2005

Full Member
PABnononaccred2
Joined
Aug 28, 2005
Location
Los Angeles
When ewx stopped operation they were still manning the chat window. They are no longer maintaining a chat. When Neteller ceased servicing U.S. customers they had 94 milliion in U.S. funds. If ewx has 1/10 it is still in the millions. Where are all the U.S. players who have lost money? I have several thousand there and I'm sure there are many others. Ewx says they have been seized by the U. S. government. Has anyone seen anything that would prove that? I'm worried that they are simply going to abscond with our money. If anyone has any information I would love to hear it.
 

3mptyseat

Quit Gambling
PABnonaccred
Joined
May 22, 2010
Location
California de Norte
When ewx stopped operation they were still manning the chat window. They are no longer maintaining a chat. When Neteller ceased servicing U.S. customers they had 94 milliion in U.S. funds. If ewx has 1/10 it is still in the millions. Where are all the U.S. players who have lost money? I have several thousand there and I'm sure there are many others. Ewx says they have been seized by the U. S. government. Has anyone seen anything that would prove that? I'm worried that they are simply going to abscond with our money. If anyone has any information I would love to hear it.

If u wanna hear some stuff, ur not alone. But I for one, while curious as hell as to what other players have heard and know, am not willing to post info about the money I lost in e-w-x and lost bc of e-w-x... What I can say, is in my case at least, if u had ACH's coming in via Navajo Networks, and that income didn't show up on ur tax filings, you may expect a call from the IRS as soon as u get done with the call from the DoJ... Mr. Holder and his merry band of new-age tax men (excuse me they are with the justice dept. "We will take jus' 'dis account, and dis one and...) seized a number of accounts that were linked to e-w-x as well... And this is where, at least for me, I can't go into it any further...

I will say, for a country that has such a media obsession, it boggles my mind that there is not more about this b.s. published... Holder is a scary mother though... Remember, he was the one who said Git-mo was gonna be closed... But that was before he got the sweet sweet taste of hickory smoked power on his palate... Now, he and Barry are singing a different tune... I don't mind getting offed, but I am not trying to spend 60 years in a 4 by 6 with Mo and Manson...
 

shirlsplay

Dormant account
Joined
Oct 16, 2005
Location
Reno,nevada
so are saying that if we want our money from ewe that were going to end up getting in trouble?
has anyone heard anything about what there doing?
thank you
 

3mptyseat

Quit Gambling
PABnonaccred
Joined
May 22, 2010
Location
California de Norte
so are saying that if we want our money from ewe that were going to end up getting in trouble?
has anyone heard anything about what there doing?
thank you

No, I'm not saying that. I'm saying, I had a bank account temporarily held in limbo and the cited reason, "Patriot act, bla bla bla, Navajo Networks Bla bla, Online Gaming bla..." It has since been released and I was promptly contacted by the IRS who told me to make sure that I amended 2008 and 2009 to show my gambling winnings per ach deposits from Navajo... I am also saying, they have my money, but I dont know who 'they' is anymore. I dont know where the money is, in large part bc EWE is not available for comment, and if they were, shouldnt be trusted, and bc the g-men are not talking whilst the press have drunken celebrities to follow around into court and whatnot...
 

vinylweatherman

You type well loads
Joined
Oct 14, 2004
Location
United Kingdom
No, I'm not saying that. I'm saying, I had a bank account temporarily held in limbo and the cited reason, "Patriot act, bla bla bla, Navajo Networks Bla bla, Online Gaming bla..." It has since been released and I was promptly contacted by the IRS who told me to make sure that I amended 2008 and 2009 to show my gambling winnings per ach deposits from Navajo... I am also saying, they have my money, but I dont know who 'they' is anymore. I dont know where the money is, in large part bc EWE is not available for comment, and if they were, shouldnt be trusted, and bc the g-men are not talking whilst the press have drunken celebrities to follow around into court and whatnot...

I thought the IRS were supposed to be good at maths, surely they expect players to LOSE when gambling, after all, this is why casinos pay tax.

You should look closely at tax law, and you might find the money in EWX can offset any "winnings".

They are probably going to look at Withdrawals - deposits as winnings, but deposits are made by a large number of means, many of which don't keep a record. It will probably cost more to investigate these cases than they get in taxes.

What they are looking for is for you to make an official declaration on the tax return that you ended each year with no overall profit, so that if they later manage to prove you DID make a profit, they can get you for tax evasion. To do this, they will need your transaction records from the CASINOS, and I doubt they will be able to get them to hand them over.

It will be worth YOU getting all the figures though, so that you have the material to defend any case they may bring later on.

The only time the UK taxes gambling winnings is where your occupation is "professional gambler", but then we wouldn't be allowed to play online anyway, because the casinos don't accept professionals.

I wonder if the US position dates from when the "mob" ran Vegas, and the IRS thought the only way they could collect any tax was by taxing the PLAYERS when they had big payouts. The IRS would probably collect MORE tax overall if they shifted the liabilty to the casinos, taxing their annual "hold" at a rate that would replace (or better still, exceed) what they are currently collecting from players. The admin should be simpler too.
 

LHofsdal

Ueber Meister
MM
Joined
Jan 9, 2010
Location
NY
I bit the proverbial bullet, and called the IRS. I have to claim the winnings that I received, not all the money that is help up in my EWX account. I will have to claim the money in my EWX account when I actually receive the money. You can claim gambling losses against your winnings but your still going to pay atotal of about 44% combined federal and state taxes. As long as you report your winnings you should be okay, but I was told by the IRS that my chances of audit does increase. Not saying I am definetly going to get audited, but the chance is greater. That is okay by me because I do keep a record of all mt deposits and withdrawals.

Even when you call the call center at EWX they tell you nothing. Same old crap, we plan on paying every customer but can not give a date as to when, blah blah blah. God only knows when anyone will see their money or if we will even get it. It has been 5 months already, and you can't find anything on any US governement web site about the thing. So pretty much it is just a waiting game.

LH
 
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vinylweatherman

You type well loads
Joined
Oct 14, 2004
Location
United Kingdom
I bit the proverbial bullet, and called the IRS. I have to claim the winnings that I received, not all the money that is help up in my EWX account. I will have to claim the money in my EWX account when I actually receive the money. You can claim gambling losses against your winnings but your still going to pay atotal of about 44% combined federal and state taxes. As long as you report your winnings you should be okay, but I was told by the IRS that my chances of audit does increase. Not saying I am definetly going to get audited, but the chance is greater. That is okay by me because I do keep a record of all mt deposits and withdrawals.

Even when you call the call center at EWX they tell you nothing. Same old crap, we plan on paying every customer but can not give a date as to when, blah blah blah. God only knows when anyone will see their money or if we will even get it. It has been 5 months already, and you can't find anything on any US governement web site about the thing. So pretty much it is just a waiting game.

LH

So much for the US being the land of low taxes.

If the UK DID levy income tax on net winnings, it would be 20%, rising to 40% for high earners (about $60K - $70K per year equivalent).

Could you argue that money tied up in EWX has been deposited, but not withdrawn, in effect a loss that needs to be "won back" before it counts. This would at least delay any liabilty until you actually receive the funds from EWX, which will probably be in a year where you have no winnings because you can't play.

The record of deposits and withdrawals is all they are going to be able to look at, and surely money in EWX is simply a frozen balance that could be anywhere, and cannot be specifically said to consist of $y of winnings and $x of stake monies.

Could you not simply declare the EWX balance as monies held in an offshore "bank account" for tax purposes, and I doubt EWX will be paying interest on it.

I am surprised the land casinos have not pressed for a reform of the tax treatment, since this system means that their customers have to worry about "special tax situations" whenever they visit a casino, whereas it would be better business if players could walk in, play, cash up, and go home just as they would from a day at the movies without worrying about keeping records.

UK gambling operators would NEVER have tolerated this level of complexity being imposed on their customers.
 

lots0

Banned User - troll posts - flaming
Joined
Jun 3, 2006
Location
Hell on Earth
So much for the US being the land of low taxes
Oh it is for the Very RICH.

Make over 250k a year your federal income taxes are about 3% on dividend income.

If your a working person making less than 100k a year your federal income tax burden is at about 38% (then you add on the state and local taxes)

If your self employed and making less than 250k a year expect to pay about 64% of your income on taxes...(then you add on the state and local taxes) :mad:
 

anniemac

Ueber Meister
PABnoaccred
MM
Joined
Jan 30, 2007
Location
Texas, USA
I don't know about the money in EWX and the IRS but I do know that if you win over x amount at a casino or on the horses that you will leave with a 1099 gambling form and you have the option of having taxes withheld then or pay them when you file your tax return.

For several years, I had to file Louisiana taxes, I live in Texas, because I had won several big hits and when they hand you your money, they hand you a tax form. LOL! Big brother knows all.
 

LHofsdal

Ueber Meister
MM
Joined
Jan 9, 2010
Location
NY
Could you argue that money tied up in EWX has been deposited, but not withdrawn, in effect a loss that needs to be "won back" before it counts. This would at least delay any liabilty until you actually receive the funds from EWX, which will probably be in a year where you have no winnings because you can't play.

Could you not simply declare the EWX balance as monies held in an offshore "bank account" for tax purposes, and I doubt EWX will be paying interest on it.

Even though the money is in an account with my name on it, it is not money that I physically received, or what the IRS considers a constructive receipt of money. Because ClubWorld only pays out a certain amount in a week, my balance was never more than 10 grand, so I don't have to claim the EWX account as a foreign account. If I had to, that would absolutely make the IRS to a tax audit.

For the past 7 years I have always had gambling winnings on my taxes because I have been lucky at the Indian casino near where I live. So for me to claim theses winnings is not something "out of the ordinary" for me.

As for the land of low taxes? I live in the state with the 2nd highest taxes in all of the US. I am fortunate enough to have made a good life for me and my family, on top of the taxes that are taken out of our paychecks, we also have to pay the IRS another 20 grand. So in total even before we factor in the gambling winnings, we would have paid in 41 grand to the government. And these bastards have the balls to tell me where and how I can spend my money.

Go Figure!!
LH
 

vinylweatherman

You type well loads
Joined
Oct 14, 2004
Location
United Kingdom
Well, it seems the UK is the land of low taxes, and for the VERY rich, the land of NO taxes:rolleyes:

Income tax is 20%, 40%, and 50% if you earn over £150K per year.
A separate tax called national insurance can add 10% on top of that.
When we spend our money, a form of sales tax called VAT is added at 20%

But win on the horses, or online, and it is ZERO% tax - the only thing we pay tax on is the interest on the winnings where it sits in the bank waiting to be spent, unless you are VERY rich, in which case you store it offshore, then invest it in a complex web of companies that makes the taxman owe YOU money:mad:

No wonder Obama has become so unpopular!
 

3mptyseat

Quit Gambling
PABnonaccred
Joined
May 22, 2010
Location
California de Norte
@vwm: the IRS already taxes the heck out of the casinos take. And then the state taxes them. And in most places, the the local authority taxes them again. And of course the players get taxed on winnings after losses are deducted. And the govt is closed for business, but somehow, I bet the IRS hasn't had it's lights turned off...
 

PenDragyn21

Newbie member
Joined
Jul 4, 2009
Location
The Lair
@VWM: Most of the tax laws on this were defined in the 50s-70s long before long before Obama got any power (thank you Vegas).
Winnings are taxed @ 25%. The 44% is a side affect of how it changes your tax bracket and what you can and cannot deduct. For example if your winnings are $10k and you have a regular salary from another another job of say $65k. You are now considered to have a salary of $75k for determining taxes. The same is done with paycheck bonuses.
I'm still a little fuzzy on what counts as winnings (which has something to do with gambling sessions), but what you ABSOLUTELY POSITIVELY CANNOT DO is add your wins and losses together and report that one number. Because winnings are income (like stated above) and losses are a deduction.

The ironic part is the politicians screaming the loudest about taxes and how the government shouldn't be messing around with your money are the same ones who block any attempt to legalize online gambling.
 

vinylweatherman

You type well loads
Joined
Oct 14, 2004
Location
United Kingdom
@VWM: Most of the tax laws on this were defined in the 50s-70s long before long before Obama got any power (thank you Vegas).
Winnings are taxed @ 25%. The 44% is a side affect of how it changes your tax bracket and what you can and cannot deduct. For example if your winnings are $10k and you have a regular salary from another another job of say $65k. You are now considered to have a salary of $75k for determining taxes. The same is done with paycheck bonuses.
I'm still a little fuzzy on what counts as winnings (which has something to do with gambling sessions), but what you ABSOLUTELY POSITIVELY CANNOT DO is add your wins and losses together and report that one number. Because winnings are income (like stated above) and losses are a deduction.

The ironic part is the politicians screaming the loudest about taxes and how the government shouldn't be messing around with your money are the same ones who block any attempt to legalize online gambling.

So, the IRS treat gambling as a PROFESSION, and tax it just like a regular job.

In this case, those gambling online have a "job", and now they are going to become "unemployed" because the DoJ has shut down their "workplace". Unless they can get another "job" in a B & M casino, they will become "long term unemployed".:rolleyes:

Rather than just going out for "a bit of fun", every visitor to a casino has to consider themselves "self employed", and keep accurate records at the "session" level in order to pay the correct taxes, and claim the correct deductions.

They could streamline this by increasing the taxes on casino operators, and removing the liability from "joe public". I expect the problem with this is the lobbying power of the big casino operators, who don't want the tax on THEIR balance sheets as an expense, even though this would benefit their customers.
It would even help tourism, as non-residents STILL have to suffer the paperwork every time they get a big payout, and have to claim back the withheld tax "through channels".
When I was in Vegas, I was advised to carry my passport, as this would minimise the paperwork on a big win, and speed up it's payment in full.
 

felicie

Dormant account
Joined
Jan 21, 2009
Location
somewhere else
Interesting why you VWM :) get taxed on everything except gambling in the U.K. How do you suppose that came about? Oh I know, Monaco? nope wrong family. :confused:
 

vinylweatherman

You type well loads
Joined
Oct 14, 2004
Location
United Kingdom
Interesting why you VWM :) get taxed on everything except gambling in the U.K. How do you suppose that came about? Oh I know, Monaco? nope wrong family. :confused:

The UK has always taxed at source, rather than relying on us to tell the taxman what we have earned, and pay it at the end of the year. Taxes ARE levied on gambling, but they are taken from the operators, who have to keep accurate records and forward the taxes to the revenue and Customs. Most UK citizens don't even have to submit a tax form as our taxes are dealt with by forcing employers to deduct them from our pay before we even see the money, this is the "taxation at source".

There has been a levy on horse racing bets, and this was taken by the bookmakers directly out of our stake or winnings - punters could even choose whether they wanted to pay a percentage of their stake, or of any payouts.

This has worked fine so far, and the government has not seen the need to make every citizen declare every gambling win, and calculate losses as deductions. The revenue simply could not cope, and it would probably cost more to implement than the tax it brought in.

I think the US taxed the gamblers because many of the casinos were run by the "mob" in the past, and they could not be trusted to collect the taxes on the activity on behalf of the government. Inertia means that they have left things as they are, even though the "mob" no longer has such a grip on the industry.

Although we do not get taxed on winnings, we also cannot take losses as deductions.

There IS an exception to this rule, and this is when you become a "professional gambler", and make a living by winning over the long term. This would apply to professional poker players, who WOULD have to pay tax on the earnings they make, and would be able to offset the entry fees, travel, etc as deductions.

Since online operators specifically prohibit professional gamblers from using their products, this situation should never arise in most cases.

This law is also exploited as a loophole by financial traders, because by spread betting on share price movements, rather than buying the shares themselves, their profits are tax free as this is considered gambling. Unless the revenue decide to mark you as a professional gambler, this works fine.

Where only luck is involved, the revenue have no prospect of claiming you are making a regular living, as in order to declare someone as a professional gambler, they have to show that they are using their skills to consistently beat the house, or other players. Hence, only Poker players tend to have to worry, along with a few horse race pundits who have demonstrated a long term ability to be able to skillfully interpret "form" and consistently outsmart the bookies.

Affiliates on the other hand, ARE liable to pay tax on any profits made from their websites, although the revenue grants a concession where the income is small, such as is the case for someone who just "dabbles" for a hobby, and has a main source of income, such as a job.
 

felicie

Dormant account
Joined
Jan 21, 2009
Location
somewhere else
Informative as usual VWM. I could make some mob/politician jokes but I'm into fixing things now instead of just bitching all the time. :)
So can your taxes be suddenly raised without your vote or do they just slowly rise like everything else. I personally feel that your way might be less painful and be an end to so many loopholes that cause so much fighting among the people, especially those that can't claim them. Your way also seems simpler and I'm always hoping for a simpler way of doing things.
Thanks for the info.
 

SlotKing

New Member
PABnonaccred
Joined
Jun 18, 2006
Location
Kentucky, ya'll...
Back to the EWX issue...

If you have money sitting in EWX that you cannot get out, you can claim that amount as a "bad debt" owed to you as a tax deduction. If you end up finally receiving the money later on, you must claim it as income - but other than that, you can claim the amount tucked in EWX's pockets as a bad debt because you tried, in good faith, to retrieve the money from the debtor.

That's a little unknown tax loophole that's a plus in this whole mess.
 

all4greed

Now we can do business.
Joined
Jul 18, 2004
Location
Pacific NW
Still there is no official outside word of what is really going on. Google turns up no new info. I'm surprised at the lack of people complaining since last November/December.

I suspect there are those that know exactly what is happening but for whatever reason, they are being quiet.
 
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