Pulling Player's Club Card out when a Jackpot is hit?

[kewlJ]

Well in most cases, this is hopefully what will happen. But what I believe is this code essentially gives the IRS carte blanche. The entries in your logs cannot be fully verified. So if they suspect you are being deceptive then they can ask for anything you don't have (because no one will have everything listed) to make you uncomfortable enough to admit to something. It's the same thing they do in an immigration interview. Even if you bring in 90% of the recommended (not required) documentation, they start telling you they want the stuff you didn't bring just to make you squirm.

Getting you to admit to fabricating losses is really their only move since neither party can fully prove the numbers. Not comfortable with this, I prefer things to be more cut and dried.

The Government and different agencies is despicable in some of these intimidation tactics that they employ. When My partner got on disability which was long before I met him he was initially denied. He had been in a severe accident at work, has two operations on his back at the time (more later), was in a full body back brace 24/7 and used two arm canes or crutches to walk. Social security disability sent him to a social security doctor who apparently said he was fine. He had to appeal and hire an attorney, who he says basically did nothing but show up and the intimidation stopped and he was approved.

I have an uncle, my mom's older brother, that as he was slipping into dementia/Alzheimer's was entering into the veterans admin system. I was handling everything at the time, until he was approved and we turned responsibility over to the government. But he was initially denied benefits and admission to a VA facility even though I had worked hard to get everything in order, all his military records and hospital diagnosis ect. Very frustrated I got a hold of someone at the VA who unofficially told me they initially deny almost everyone. And then they find anything and everything missing, t's uncrossed and i's undoted, delaying everything multiple times before things are finally approved.

It isn't hard to figure out what they are doing. If they can delay every case, delay, deny, delay, for a year, 18 months before finally approving, half those people will have passed away and not even get what they are entitled to. And remember these are veterans who served our country. They ARE entitled to these services. It is just disgraceful.

[accountinquestion]

It is almost like they are saying, if the person goes to this extent to create the log, then....whatever.

Well in most cases, this is hopefully what will happen. But what I believe is this code essentially gives the IRS carte blanche. The entries in your logs cannot be fully verified. So if they suspect you are being deceptive then they can ask for anything you don't have (because no one will have everything listed) to make you uncomfortable enough to admit to something. It's the same thing they do in an immigration interview. Even if you bring in 90% of the recommended (not required) documentation, they start telling you they want the stuff you didn't bring just to make you squirm.

Getting you to admit to fabricating losses is really their only move since neither party can fully prove the numbers. Not comfortable with this, I prefer things to be more cut and dried.

But they will never do this. I will even admit I have an irrational fear of the IRS but it has never been due to gambling winnings. Sure I report ALL my winnings just like EVERYONE else on here but I've never ever been concerned about the IRS in regards to gambling. THere is no way they will ever put much effort into some guy with 10-20k of gambling losses reported. Most gamblers lose. Very very few win. THere is nothing to make them probe further regardless of Kewl's story.

The only issue I could think of is that maybe losing gamblers don't bother with writing off their w2gs? BUT I've seen guys hammering on big denoms. They must just get a ton of w2gs... If you aren't doing $25+ a whack or something then I doubt you'll have many compared to them.

Do what you wish but I feel strongly your concern is largely misplaced. However if you realize it'll concern you too much in the back of your mind then that adds a ton of consideration which I can't comment on.

[MisterV]

... I will even admit I have an irrational fear of the IRS...

As well you should.

Then again, there are some who thumb their nose at the IRS.

I know a guy who runs a private transportation business, has done it for 20 or so years, and he's never reported any income to the federal or state tax authorities.

Clever lad, he insists all payments be by cash, and he gives out no receipts.

The locals love him.

He does well: recently traveled in Asia, now is "leaf peeping" in New England.

Wicked World.

[jdog]

THere is no way they will ever put much effort into some guy with 10-20k of gambling losses reported.

That is an assumption. In 2019 they audited about .29% of taxpayers with incomes under $200K. I've heard it both ways but I wouldn't just assume they'll be fair or it will make sense. I'm pretty sure auditors are incentivized to recover as much as they can. A very good friend of mine was audited and they initially went after him for some ridiculous amount. He got an attorney who researched then negotiated it down to about half, but about a third of that savings went to attorney fees. What kewl says about applying for gov benefits sounds about right. All I know is I didn't care for a USCIS agent interrogating me despite the fact I had excellent documentation.

I would assume this: It won't be fun and it won't be cheap.

[accountinquestion]

THere is no way they will ever put much effort into some guy with 10-20k of gambling losses reported.

That is an assumption. In 2019 they audited about .29% of taxpayers with incomes under $200K. I've heard it both ways but I wouldn't just assume they'll be fair or it will make sense. I'm pretty sure auditors are incentivized to recover as much as they can. A very good friend of mine was audited and they initially went after him for some ridiculous amount. He got an attorney who researched then negotiated it down to about half, but about a third of that savings went to attorney fees. What kewl says about applying for gov benefits sounds about right. All I know is I didn't care for a USCIS agent interrogating me despite the fact I had excellent documentation.

I would assume this: It won't be fun and it won't be cheap.

I don't assume they'll be anything but I just don't think there is a motive there to go far. These people are largely just lazy government employees. If there is no other red-flags they're going to assume you're a losing gambler just like nearly everyone else. You're not filing as a professional gambler. Losing as much as you won on slots shouldn't be a red-flag.

Even with the .3% a year.. I bet the vast majority of those were due to red-flags if not all of them. An auditor is going to see your stuff, see no red-flags, see your gambling log and move on. They'd much rather go after someone who has shady stuff going on.

Now if you have shady stuff going on then that is far different. Yes it is all an assumption. I agree but at some point you just gotta write off the total longshots and that is you are audited and it is some deranged auditor. So many people really cheating on their taxes in some capacity.. they're just going to move on to something where they can easily find the fraud even if low-level. And I'm sure it isn't hard.

Anyway, I don't mean to argue with you so much.. but.. just be smart about things. And don't give the IRS money they don't deserve. Much like casinos.