Again, I apologize for being behind in my e-mails. It seems that
there are 6-7 replies before I get a chance to respond to the
thread.
First of all, for the person who did receive a W2G for cashing out
$1200 in cashback at once did receive it in error. All they have
to
do is to attach a note to their tax return explaining the error or
go
back and try to convince the casino to issue a W2G-c(orrected)
showing a zero amount.
If you feel that cashback is taxable then why would you recomend the
above??
Second, M. Perry, you are incorrect in your analysis of cashback.
Cashback is NOT ALL a rebate of your losses and therefore non-
taxable.
plz reread my response, i said it is a return of part of the
bet,nthin to do with losses or wins,
You state that you base your opinion on court cases. I base mine
on
the court case of Hochman v. Commissioner which discusses the
concept
of return of "premium" in gambling specifically
Reread the court decesion, actually makes my point
as well as
discussions I had with an IRS revenue officer and the district
supervisor here in Las Vegas about 3 weeks ago.
the district supervisor in vegas has not seen a return or dealt with
a tax payer in many years, revenue officers are poorly trained with
regards to audits, they gather the info and forward it to smebody
else who makes these decesions, They are very very good at filing
leins and seizing property thou. Ask Irwin Schiff
If you do the
research you claim, you should have no problem finding the case in
your reference materials.
Internal Revenue Manual, Tax Court Today, Pub 525,Pub 17, are some i
use
Finally, if you do truly believe your
position, I'd be more than happy to arrange the have the Las Vegas
IRS office audit your tax return to see if your assertion holds true
I get audited every year, but i apreciate the offer, i have forward
your request to the proper department.
The Las Vegas office and the IRS might be surprised that you would
have such a strong pull that you can ARRANGE an audit. Who do you
contact? How many times have you done this?? We want details!!
Although in the upcoming book, we talk about gambling sessions wins
and losses, I think we'll see a major revamping of the methodology
of
reporting wins and losses in the next couple of years based upon
the
discussions I've had with the IRS. Changes have already been semi-
implemented at the field audit level; hopefully we'll get published
regs in the next year or so.
It is to comply with the patriot act, ie: money laundering is the
issue, Casinos have been lax in completing CTR, cash transaction
reports example Mirage, audits of gamblers are rare because if they
reported all income, the $ money spent does not justify the $
collected.
Regarding comparing a car rebate against cashback is really
comparing
apples to oranges. For example, the IRS has determined that at
this
juncture frequent flyer miles are not considered income although
the
argument could very well be made that it is income
You are making my point, thanks. the car rebate, cashback, and
frequent flyer miles are ,for tax purposes, a return of the purchase
price, a return of your money that the tax has already been paid.
Congress does not tax the same income twice.
Pardon me if I didn't catch your credentials, but can you please
refresh my memory?
Have not figured that out yet???
I am an Enrolled Agent. I have numerous clients
who are gamblers and I've represented many gamblers before the IRS
whether it be in person or via correspondence and so far have a
perfect record in my representations(knock on wood LOL).
perfect for who? your clients?
I am not surprised, IRS likes an EA who say yes and writes the checks
and no, auditors will not correct a mistake that a tax payer
repersentive makes that cost their clients money,
As an aside, this is why I don't post on the boards. If all I did
was to respond to all of the disinformation that is out there, I
wouldn't get anything else accomplished! Unfortunately, and I see
this in my profession a lot - people will believe what they want to
believe.
As you do, thru out this discussion you have used phrases like "i feel
or "I think" or "I belive" never i know.
and yes disinformation is out there, that is why i responded in the
first place.
Ms. Scott has been a godsend to this board & to gamblers every where.
I would hate to see her reputation for being honest and accurate
damaged.
The unethical, dishonest and incompetent out there will tell you what
you want to hear knowing that although they are wrong,
Let me see, you threaten me with an audit, misread my comments,and
missed the point of the court case you tried to quote.
Should not be so hard on yourself!!
they have about a 98% chance that the IRS will never catch it. But
I'd hate to be the client that falls into the 2%
The IRS doing "blind audits" has droped from 1 1/2% in 95 to .005 for
2001, so low that congress is funding it back up again. and if you if
you sincerly take a tax posistion that is later overturned, taxes
will charged but the penalty for late payment can not be charged as
the IRS has to proof you were willfull in trying to avoid the
taxes,somthing very hard to prove if the tax payer reported all
information, courts have consintly upheld this posistion
Signing off,
Marissa Chien, EA
Me too! I know there as been enuff discussion to give the group ample
information, and as usual plz contact your tax profresional before
following any advice.
Anxiously waiting for the Vegas Audit Ms Chen promissed, Plz HURRY!!
M J Perry
& yes spellchecker still broke
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--- In vpFREE@yahoogroups.com, "marissa2c" <marissa2c@a...> wrote: