Originally Posted by Dan Druff View Post
Finally, there's the matter of audits.

Very few pro gamblers get audited. As you might imagine, I know a LOT of pro gamblers -- through poker, sportsbetting, and casino advantage play worlds. Of all those gamblers, very few have been audited due to their handling of their tax filings. Of those I know who did get audited, almost all of them were people who simply didn't file tax returns for a few years in a row, and the IRS eventually came knockin'. But among those who file taxes and voluntarily send money to the IRS that they weren't otherwise expecting to receive, they tend to get left alone.
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I don't want to say too much about this, although I have shared it before, but I was audited a number of years back. Not an audit where I had to go in and sit down and go over everything line by line....what do they call that....a cavity check type audit.

My audit was a written request for documentation. I had a financial guy that handles my taxes and he told me what they wanted.

So for a little context this was at the height of the VP machine play my partner and I were doing. And I had a lot of W-2 for that year. I suspect that is what triggered the action.

So they wanted detailed records of all play. So I put that together from actual records as best I could and submitted it in handwritten form in a little ledger type notebook purchased at the dollar store. My financial guy submitted it and the only other correspondence was notification a while later, that the case was closed.

My own personal feeling was it was some IRS dude harassing a low level winning player, trying to see if he could get that player to cough up some more money. And when he couldn't, it was dropped.

And now with cuts in IRS staffing, you would think there would be even less of this petty type shit.