Caseydog-
I suggest you just pay the tax on the $800. It will probably be a much bigger hassle to fight the IRS in court, even if you dont need a lawyer.
If your in the 25% bracket, is it worth 200 buck's for all that aggravation?
Ned C.
The Wild Joker
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--- On Fri, 6/5/09, caseydog73 <caseydog73@yahoo.com> wrote:
From: caseydog73 <caseydog73@yahoo.com>
Subject: [vpFREE] Fighting the IRS
To: vpFREE@yahoogroups.com
Date: Friday, June 5, 2009, 6:49 PM
Some of you may remember that I posted here a couple of months ago about receiving a letter from the IRS saying I owe $1,700 for 2007 underreported gambling winnings.
Basically here was the deal:
- The IRS had W2G's in the amount of 38,800.
- My journal showed gambling winnings of 32,000, based on daily sessions. I won many jackpots, but I had bigger losing days.
- I itemized losses up to 32,000, my real winnings.
Well, I sent them a letter disputing their account, with an abbreviated version of the journal, plus an explanation.
I have just received a letter essentially saying that it's impossible for them to show a certain amount in W2-G's and for me to claim less than that amount in winnings. So essentially, they ignore any possible journal or session method.
I called and talked to mr. IRS. I tried to explain my response but he clearly had never heard of anything like it. Since my actual losses were $38,000, he said I should just file a new Schedule A and only have to pay taxes on the $800 difference between that and what they got in W2-G's.
But ... but ... THAT'S NOT ACCURATE! He said if I insist on disagreeing, the next step would be tax court.
Should I just re-file everything and make them happy by actually reporting what THEY consider my winnings are? Or should I try to got to tax court? Do I need a lawyer for tax court? It that's the case, then I should probably just redo the forms to make them happy, even though it's not accurate.
Any thoughts?
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