Am I Overly Paranoid?

[aslan]

http://www.post-gazette.com/pg/10075/1043076-28.stm

(Archive copy)

Looks good! Maybe we should, for now, clam up as to what AP's are looking for in games until they commit themselves.

I borrowed these quotes from the thread, PA Blackjack Update.

With the whole country (especially, the Eastern U.S. at present) revving up with easy access to gambling venues, why am I paranoid that the government might be preparing to make its rules for audit of gambling winnings more stringent? For example, the win/loss statements that I use to offset gambling winnings is declared by the casinos themselves "not intended for tax purposes." What kind of "proof" can one reasonably be expected to have?

Also, I would not be surprised to see the thresholds for reporting winnings lowered.

I guess what generated this sudden paranoia is that the current trend toward state gaming seems too good to be true, and you know what they say if something seems too good to be true.

 

[21forme]

Yes you are

Your forgetting that 99 44/100% of gamblers LOSE money. With the exception being the occasional jackpot and the AP. I wouldn't expect the IRS to have gambling winnings to be high on their priority list of unreported income.

 

[aslan]

Your forgetting that 99 44/100% of gamblers LOSE money. With the exception being the occasional jackpot and the AP. I wouldn't expect the IRS to have gambling winnings to be high on their priority list of unreported income.

I hope you're right. It's true the vast majority lose, but if they can't prove it on audit, they can still get taxed for the reportable portion they did win. A guy loses $800,000 (call him Bennett) and he has reportable jackpots and table winnings of $100,000. Bennett could have to pay 38% incremental tax rate (Fed and State) on $100,000 if he can't prove he lost the other $900,000 ($100,000 of it anyway). Add that to the Pres's recent shots at Las Vegas, which he since "sort of" apologized for.

I wonder if the government has the power to put a special tax on casino earnings, similar to taxes on sales of alcohol and cigarettes, a kind of "sin" tax in reverse? It must be my day for being paranoid. :whip: I guess I just figure that every silver lining has a cloud. lol :laugh::whip:

 

[rukus]

if you keep detailed logs of your play, that should suffice in case of an audit. if they trust companies not to cook their books, why wouldnt they trust you not to cook yours?

disclaimer: of course, dont just accept tax advice from me, see your accountant :cool2:

 

[blackjack avenger]

Almost Made My Retirement Fund

:laugh::whip:

If you had used my patented :joker::whip:
I would have sued!:joker::whip:

 

[aslan]

if you keep detailed logs of your play, that should suffice in case of an audit. if they trust companies not to cook their books, why wouldnt they trust you not to cook yours?

disclaimer: of course, dont just accept tax advice from me, see your accountant :cool2:

On audit we call that corroborating evidence, i.e., purchase orders, receipts, vendor confirmations, asset inspection, etc., which we use to verify the booked amounts. There is no "trust companies not to cook their books." The casinos don't give me a receipt when I "purchase" entertainment at their tables or through their slot machines. If they did, I would have corroborating evidence to support the figures in my "books" (detailed logs).

The IRS already has the power to deny your "winning" amounts, if you don't have evidence to support your detailed logs. Most of us escape audit because the risk of audit is very low unless you meet certain high risk criteria. At any time, the IRS can make gambling winnings a high risk area for audit. And puleeze don't show them trifecta tickets with shoe imprints on them! lol :laugh:

 

[Katweezel]

On audit we call that corroborating evidence, i.e., purchase orders, receipts, vendor confirmations, asset inspection, etc., which we use to verify the booked amounts. There is no "trust companies not to cook their books." The casinos don't give me a receipt when I "purchase" entertainment at their tables or through their slot machines. If they did, I would have corroborating evidence to support the figures in my "books" (detailed logs).

The IRS already has the power to deny your "winning" amounts, if you don't have evidence to support your detailed logs. Most of us escape audit because the risk of audit is very low unless you meet certain high risk criteria. At any time, the IRS can make gambling winnings a high risk area for audit. And puleeze don't show them trifecta tickets with shoe imprints on them! lol :laugh:

... And the vultures are circling.

 

[shadroch]

The sky still isn't falling. Relax and breathe deep.