Originally Posted by DGenBen View Post
The reason people get confused about how the IRS handles gambling winnings, is because they do not handle it consistently, & some of the rules / laws are open to multiple interpretations.

Its been said that IRS agents based in Nevada would be more familiar & consistent with how they handle gambling because they see a lot more of it than agents elsewhere in the country, especially in areas where there is little or no gambling.

Also the IRS has been hiring many new employees and many of the people processing returns are not experienced & how your taxes get handled can be different based on who handles them there.

Best thing to do is hire a professional to deal with the taxes for you. Someone that can also respond appropriately to letters from the IRS & audits should they come up.
Most so called tax professionals are nothing more than collection agents that you pay. Many of them change their story when the letters show up.