Originally Posted by MaxPen View Post
Originally Posted by SLaPiNFuNK View Post
Originally Posted by MaxPen View Post

Why would you not amend your return instead?

Did your tax guy just pull a loss number out of nowhere against the w2-g's he had access to?
Did file an amended return. They said I could not file an amended return to reduce the balance. Remember, I already filed my losses as XXX,XXX, this would increase my losses by 100K something on the amended return. They would also only accept the amended return if I paid the balance, so I paid the balance and then they said, too bad so sad the amended return will not reduce the amount you owe.

The loss number was basically against the w2g's that we had since he said that the loss can not exceed the winnings because then they would wonder where that money came from etc...
It all boils down to you having screwed up records. That's kind of what I thought. If you're going to fabricate numbers to correlate to w2-g wins then, yeah, you best not miss any. Your accountant is wrong about the loss not being able to exceed the win. You can have whatever losses in your case you just wouldn't receive any credit for them above offsetting wins.

I always recommend reporting wins and losses at 115-120% of wins for which you have records for this very reason, if someone is just making up numbers. Just in case something like this happens.
AFAIK you can see all your w2gs on the IRS website these days so this sort of thing shouldn't really happen. I'm not even sure what particular value would be in keeping the physical W2-Gs for this reason.