losses, your accurate records will help backup your side of the story.
On 27 Mar 2009, at 17:48, caseydog73 wrote:
> Actually, I have enough loses to offset the total of their W-2G
> list, but that kind of defeats the whole purpose doesn't it? What's
> the point of keeping an accurate journal if all you really need to
> do is offset W2-G's?
>
> --- In vpFREE@yahoogroups.com, "caseydog73" <caseydog73@...> wrote:
> >
> > Thanks, Barry. I will file the response with an explanation of
> sessions, along with a copy of spreadsheet page showing winning
> sessions and losing sessions. I'll see what that does for me.
> >
> >
> > --- In vpFREE@yahoogroups.com, "Barry Glazer" <b.glazer@> wrote:
> > >
> > > > 11a. Help! IRS says I owe money
> > > > Date: Thu Mar 26, 2009 7:20 pm ((PDT))
> > > >
> > > > Has anyone else dealt with this problem?:
> > > >
> > > > - In 2007, I kept a pretty good gambling journal, which
> showed winning days
> > > > totalling about 32K and losing days about 38K. I filed a
> 1040, noting the 32K in
> > > > earnings but itemizing 32K (only up to my winnings).
> > > >
> > > > - Well, today I receive a letter saying I owe $1,700! They
> added up the W2-G's
> > > > and it comes to 38K, above the 32K I reportedly won. This
> part is true, HOWEVER,
> > > > they only see teh w-2G's and not the losses that came
> immediately after being
> > > > paid those jackpots. I mean, it's possible to win a 4K royal
> jackpot and then
> > > > within hours blow that entire sum back playing $5 VP. So net
> for that day is
> > > > zero, not 4K.
> > > >
> > > > I can file a response, they say, with documentation. Should I
> file my complete
> > > > journal for that year with an explanation on the cover sheet?
> Or can I take it
> > > > to an IRS office?
> > > >
> > > > Or am I screwed?
> > > >
> > >
> > > You are "screwed" only to the extent that your best efforts
> don't guarantee a correct determination by the IRS, and it might,
> in the end, turn out to be most economical to just pay them.
> > >
> > > But first... DO try every step they allow you that's not too
> costly / burdensome to you. Start with the response, explaining
> that you used the session method of determining your wins and
> losses and how that can result in more W2G money than reported
> winnings. I'd send them copies of the entire gambling journal to
> show them you are keeping your records contemporaneously and in
> good faith. If they still try to collect the tax, there is probably
> (my last audit was 30 years ago, thank goodness) still a process
> for an appeal, first to a low-level IRS officer and then to a
> higher-level, that you can do yourself without hiring a tax
> professional or attorney (which would be good advice for larger
> amounts or a charge of tax evasion / fraud, but not for what you
> owe, most likely). It used to be that only the second level of
> appeal was a person who had the authority to "make a deal" or
> really do something about your case.
> > >
> > > It consumes a little time, but is not as unpleasant as some
> suggest, and again, the worst that can happen is they still assess
> your income "their way" and you have to pay the tax, interest, and
> penalty (you might at least, if all else looks like it's going to
> fail, be able to talk your way out of the penalty).
> > >
> > > --BG
> > >
> > > =================
> > >
> >
>
>
>
[Non-text portions of this message have been removed]
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