I'm certain you all know that is important to keep your gambling
records for at least 7 years after the appropriate IRS returns are
submitted. Doing so just saved me a lot of money and hassle. So a
heads up:
Last week I got a letter from the IRS demanding a large amount that
included interest and penalties because I had supposedly overstated my
withholding. According to the IRS a casino had reported the income
earned on a W2-G but not the withheld amount.
I had, of course, filed the appropriate copies with my return but that
was not sufficient, I now, a couple years later needed to "prove" that
the amount had been withheld.
Fortunately, I keep records and had the "copy C" of the W2G in
question with my others and papers from that return.
Just a heads up .. keep your records handy.