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I received letter from IRS --

#1

In 2004 I filed my tax return with "winning" and "losing sessions" and the
winning sessions were less than the amount of W2Gs. As per Jean Scott's
instructions, I also included a list of all W2Gs and a note of explanation.

Just got back from 3 week vacation to find letter from the IRS asking to
explain the "missing" amounts of W2Gs that were not included in my total
"Gambling Winnings."

I'm in the process of submitting a reply (due by April 19 by the way - they
don't give you much time). If anyone has suggestions or especially can
provide any supporting Tax Court Cases or revenue rulings, I'd appreciate them.
Send me private email.

I know that at least 1 or more of you have been through this so I would
appreciate any help. I'm not sure, what if anything, can be done to eliminate
questions when sending in 1040 forms.

I do not file as Schedule C, for one thing I lose money gambling.

Thanks - Misscraps@aol.com

[Non-text portions of this message have been removed]

#2

<<I know that at least 1 or more of you have been through this so I would
appreciate any help. I'm not sure, what if anything, can be done to eliminate
questions when sending in 1040 forms.>>

Linda, actually you did exactly what you were supposed to do. But these so-called "letter audits" (called CP-2000 letters) are generated by computers and if a human being didn't notice the attached explanation and "instruct" the computer, then this notice was automatically sent to you.

You should have no problem. Just write a letter, again sending the list of W2G's and an explanation that these are all incorporated into your gaming diary and reflected in your total win/loss figures.

On page 25 of "Tax Help for the Frugal Gambler" I describe how this happened to us one year and we did just as I describe above. I never heard from them again and I wasn't even asked to produce my diary. I mention that these letters from the IRS are "scary" but are really not a problem. You don't need to refer to court cases or get into technical explanations since this is not a real audit. It is merely a computer program that matches up all information received by the IRS.

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________________________________________
Jean $�ott - http://www.FrugalGambler.biz
  Tax time is coming up - groan! "Tax Help
   for the Frugal Gambler" can answer many
   of your questions!