I recently was picked for an IRS compliance audit (Las Vegas office,
2006, Form 1040). Big honor, huh?
Among the (many) items the agent has asked to see are gambling records,
including my gambling diary, W2-G forms, casino win/loss statements,
markers, casino checks, etc.
I have read a lot of general suggestions and interpretations of tax law
and regulations here in the past. Has anyone had actual first-hand IRS
audit experience that they are willing to share, here or privately?
Thanks!
A few years ago, I had to submit, not to a full-blown audit, but
an "interview" at the Las Vegas Grand Inquisitor's, er, IRS office,
because I had a giant pile of W-2G's, but I had filed a Schedule C
as "professional gambler" and had itemized, thus showing only a
$22,000 profit for the year, which was accurate....but the IRS
doesn't give a rat's rectum about truth or accuracy.
It soon became evident that the purpose of the "interview" was to
try to trip me up, to catch me out in some misstatement or error,
and to use that as leverage to accuse me of some horrible wrongdoing
(and sock me with a gigantic tax bill). He tried to stay on the
offensive, BUT I WOULDN'T LET HIM. I kept saying that I was engaged
in legitimate activities, had complied with the law, and had kept
accurate records; that he had NO cause for suspicion other than that
others in my position had NOT complied with tax law; and that if he
persisted in what I considered harrassment, I would take my case to
federal tax court.
After a couple of hours of this crap, the jaws of the crocodile
opened, and I swam free. I am convinced that it was only my
aggressive defense of my rights and my position that saved me from
much further torture.
You have to realize, going in, that these people are individual
careerists who are rewarded when they find "evildoers". If they
catch and fillet you, that's a feather in their cap, and a road to
possible promotion. The only counterforce that you can offer is the
same one we all learned to use against the schoolyard bully: fight
back; make it not worth their while to harass you; make them seek
easier prey.
My father lost SEVEN MILLION DOLLARS, (yes, $7,000,000) to the IRS
because he did NOT fight back. At least I learned my lesson from
seeing that happen--he lost virtually everything to those swine.
I am painting this as an adversary situation, because that's what it
is---and that's what it will be for YOU. Insist going in, keep on
insisting, and make it clear that you will continue to insist on
your rights, even if they refuse to acknowledge those rights.
Otherwise, they'll have you for breakfast.
Did you file a Schedule C as a professional gambler, and how did you
define "wins" or another way of asking were your total winnings less
than the aggregate of your w2-gs because you did a session tally or
daily tally of win/losses etc? If you have less winnings reported
than total w2-gs, did you attach a reconciliation to your gambling
log?
I recently was picked for an IRS compliance audit (Las Vegas
office,
2006, Form 1040). Big honor, huh?
Among the (many) items the agent has asked to see are gambling
records,
including my gambling diary, W2-G forms, casino win/loss
statements,
markers, casino checks, etc.
I have read a lot of general suggestions and interpretations of tax
law
and regulations here in the past. Has anyone had actual first-hand
IRS
audit experience that they are willing to share, here or
privately?
My wife and I just completed a successful audit through the Appeals
process. You can contact me if you want.
Bob from NY
-----Original Message-----
From: vpFREE@yahoogroups.com [mailto:vpF…@…com] On Behalf
Of gimlet1037
Sent: Tuesday, February 05, 2008 5:29 PM
To: vpFREE@yahoogroups.com
Subject: [vpFREE] IRS Audit Experience
I recently was picked for an IRS compliance audit (Las Vegas office,
2006, Form 1040). Big honor, huh?
Among the (many) items the agent has asked to see are gambling records,
including my gambling diary, W2-G forms, casino win/loss statements,
markers, casino checks, etc.
I have read a lot of general suggestions and interpretations of tax law
and regulations here in the past. Has anyone had actual first-hand IRS
audit experience that they are willing to share, here or privately?
Thanks!
[Non-text portions of this message have been removed]
I recently was picked for an IRS compliance audit (Las Vegas
office,
2006, Form 1040). Big honor, huh?
Among the (many) items the agent has asked to see are gambling
records,
including my gambling diary, W2-G forms, casino win/loss
statements,
markers, casino checks, etc.
I have read a lot of general suggestions and interpretations of tax
law
and regulations here in the past. Has anyone had actual first-hand
IRS
audit experience that they are willing to share, here or
privately?
Thanks!
Did you have a larger number of W-2's. Was there a big jump in your
income from previous years. I am always curious about why one would
be singled out. Also surprising is how quickly you have been selected.
In the past they usually send a letter for an audit for a return a
couple of years old. They must be able to do quicker audits now. It's
actually in the IRS best interest to try to audit returns 3 years
old. That is more trouble for the taxpayer as he has to pay for bank
statements. Also it is more likely the taxpayer has misplaced records
which gives the IRS a better chance to collect money. The less
records the person being audited has reduces their chances of winning
the audit.
--- In vpFREE@yahoogroups.com, "gimlet1037" <kenroznoy@...> wrote:
I am curious why the IRS would ask for a casino win/loss statement.
The last I checked..no one is required to use a slot card and
therefore the casino would not be able to generate a win/loss
statement. Also, even if you did use one - how is anyone sure that
the person using the slot card is actually the owner of the slot
card. Ever leave your slot card in a machine and when you realized
it - you come back to find someone is playing on the machine with
your card it in still and they don't even realize it? I have made
that error a few times especially when rushing off to a dinner
reservation, etc... The win/loss statement is the one that really
surprises me. Many Indian casinos will not provide that
information.
>
> I recently was picked for an IRS compliance audit (Las Vegas
office,
> 2006, Form 1040). Big honor, huh?
>
> Among the (many) items the agent has asked to see are gambling
records,
> including my gambling diary, W2-G forms, casino win/loss
statements,
> markers, casino checks, etc.
>
> I have read a lot of general suggestions and interpretations of
tax
law
> and regulations here in the past. Has anyone had actual first-
hand
IRS
> audit experience that they are willing to share, here or
privately?
> Thanks!
>Did you have a larger number of W-2's. Was there a big jump in your
income from previous years. I am always curious about why one would
be singled out. Also surprising is how quickly you have been
selected.
In the past they usually send a letter for an audit for a return a
couple of years old. They must be able to do quicker audits now.
It's
actually in the IRS best interest to try to audit returns 3 years
old. That is more trouble for the taxpayer as he has to pay for
bank
statements. Also it is more likely the taxpayer has misplaced
records
which gives the IRS a better chance to collect money. The less
records the person being audited has reduces their chances of
winning
--- In vpFREE@yahoogroups.com, "VpKing77" <vpking77@...> wrote:
--- In vpFREE@yahoogroups.com, "gimlet1037" <kenroznoy@> wrote:
the audit.
--- In vpFREE@yahoogroups.com, "gamblinggrandma" <gamblinggrandma@...>
wrote:
I am curious why the IRS would ask for a casino win/loss statement.
Its just ancillary information, showing that one actually played in
that casino during that calendar year.
Don the Dentist
No, I did not file Schedule C. I reported W2G's as income and an
equal amount as losses. I would be interested in first hand IRS
audit experience anyone can share that might be helpful.
Thanks!
Did you file a Schedule C as a professional gambler, and how did
you
define "wins" or another way of asking were your total winnings
less
--- In vpFREE@yahoogroups.com, "caplatinum" <belairgold@...> wrote:
than the aggregate of your w2-gs because you did a session tally or
daily tally of win/losses etc? If you have less winnings reported
than total w2-gs, did you attach a reconciliation to your gambling
log?--- In vpFREE@yahoogroups.com, "gimlet1037" <kenroznoy@> wrote:
>
> I recently was picked for an IRS compliance audit (Las Vegas
office,
> 2006, Form 1040). Big honor, huh?
> ...... Has anyone had actual first-hand IRS
> audit experience that they are willing to share, here or
privately?
> Thanks!
>
The Las Vegas-based agent's request (which includes many other items
unrelated to gambling) says:
"Gambling diary with all supporting documentation, such as cancelled
checks, ATM withdrawals, credit card advances, casino markers, race
or keno tickets, and letter from casino stating wins, losses and type
of gambling activities in 2006."
This would appear to me to be boilerplate.
Does anyone have first-hand experience with an audit of these items?
Thanks!
--- In vpFREE@yahoogroups.com, "gamblinggrandma"
<gamblinggrandma@...> wrote:
I am curious why the IRS would ask for a casino win/loss
statement.
The last I checked..no one is required to use a slot card and
therefore the casino would not be able to generate a win/loss
statement. Also, even if you did use one - how is anyone sure that
the person using the slot card is actually the owner of the slot
card. Ever leave your slot card in a machine and when you realized
it - you come back to find someone is playing on the machine with
your card it in still and they don't even realize it? I have made
that error a few times especially when rushing off to a dinner
reservation, etc... The win/loss statement is the one that really
surprises me. Many Indian casinos will not provide that
information.>
> --- In vpFREE@yahoogroups.com, "gimlet1037" <kenroznoy@> wrote:
> >
> > I recently was picked for an IRS compliance audit (Las Vegas
> office,
> > 2006, Form 1040). Big honor, huh?
> > Among the (many) items the agent has asked to see are gambling
> records, including my gambling diary, W2-G forms, casino win/loss
> statements, markers, casino checks, etc.