[cferneyh]

I'm not exactly sure what you are trying to say here.

Cfer - i didn't want "the story". i just wanted you to answer the first question i posed to the best of your knowledge and experience...the second question (the one you answered) was rhetorical. I'm just curious about this issue for my own knowledge outside of this story....

So i make a bunch of bets (legal), win a bunch of money (also legal, according to fingernailsonhull - thanks for your help btw FOH), through a bookie (who is operating an illegal business). How am i to legally account for those winnings?

If fail to report those profits, i am committing tax fraud. If i report the profit as income other than gambling winnings, i am committing tax fraud. If I report them as gambling winnings but lie about where i gambled and won, i am committing tax fraud. If i report them exactly as they are - winnings from an illegitimate gambling ring - am i legally exempt from prosecution? I better be, because i just threw Johnny Four Fingers under the bus, and i'll soon be dead, which is worse than tax fraud.

Please clarify this for me, someone.

Well, like most Canadians I'm not terribly familiar with US tax law. But my good friend Google led me to this:

Your tax liability depends upon the jurisdiction in which you reside.

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