IRS auditing - regarding drawings/tournaments

[misscraps]

I'm currently being audited by the IRS for year 2004. Among other problems,
I was issued 1099s for several drawings from several casinos - the amount of
entries was dependent upon the amount of play. For example for every 100
points you got 1 entry. Also I had some winnings from Invitational Slot
Tournaments.

I listed all these as "Gambling Income" - however the IRS is now sawying
that all 1099s are Misc. income (and you cannot deduct gambling losses against
them).

So my question is - has anyone done this in the past and successfully
prevailed against the IRS on this aspect during audits?

If so, could you contact me privately.

Also - does anyone know of specific casinos that may issue W2Gs for this
type of "prize" rather than 1099s? I was told Arizona Charlies and perhaps
others do this?

Has anyone been able to have a casino reissue a 1099 for such "prizes" as a
W2G?

Again, please contact me privately if you've had experience with this.

Thank you - Misscraps@aol.com

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[Harry_Porter]

misscraps wrote:

I'm currently being audited by the IRS for year 2004.

I, and others here, feel for your frustrations these last few months.

For personal reference, I'm curious whether your interaction with the
IRS has advanced beyond a relatively routine letter audit to an actual
meet with an examiner.

A letter audit in your circumstances wouldn't be entirely surprising.
You've likely got some sizable numbers that you're reporting and it
wouldn't be unexpected for a computer analysis to trip over them.

However, I've been hoping that in your jurisdiction a reasonably
composed reply with appropriate documentation would satisfy concerns
and the matter wouldn't proceed further.

Unfortunately, I can personally attest that the rationality of most
IRS personnel that a taxpayer deals with on first encounter has
diminished precipitously in the last few years.

Keep in mind that, if you find yourself coping with an intractable rep
who either isn't willing or capable of dealing with gambling
intracacies, the Taxpayer Advocate Service/IRS Problem Resolution
Service is a valued resource. I can't speak from recent experience,
but a few years ago a found a shining beacon of intelligence actually
resides there.

- Harry