Taxes on winnings a ripoff

[cddenver]

You will have losses so just use the players card end of problem.
 
In the last few years the casinos here in CO have begun putting disclaimers at the bottom of the year-end statements saying that the statements are not to be used to support tax filings.  I don't know if that's true everywhere.  So, I keep session-by-session records as well.  I've never been audited by the IRS, but I've been audited at the state level over W-2G issues every year but one since I switched to e-filing.  In my case, I've never been asked for year-end statements, but Colorado always wants the paper copies of W-2G's.  Go figure.
 

[oej719]

[shadowman]

It's really nice that NV does not have any state income tax. Makes life a whole lot simpler.

[shadowman]

Yep.  I haven't heard of anyone being hassled by the IRS either where a W2G wasn't involved.  But, the potential liability is there.  I don't know how they would run down the info short of demanding records from casino player's clubs.  But if you got in some other hot water with them, they will start digging and might turn something up but bury you with!

 
As already mentioned the casinos are notoriously poor coin-in/out recorders. Not only that, I believe the IRS has sometimes ignored win/loss statements because they are so unreliable. Your only VALID records are those kept yourself documenting each session. 
 
One casino I played at a few years ago double counted wins whenever a person received a hand pay. The win/loss statement at the end of the year looked like anyone who played these machines were big winners. I discovered the problem by comparing it to my own records, ponted it out to them and guess what? They never fixed the problem! Those particular machines are now gone thankfully.

[bigboy]

I think it was already stated that on table games, there is something like a $10,000 minimum before a W2G is issued by the casino informing the IRS of the revenue.


 
No W2G's are issued for table games, irregardless of the amount that is won. However, the casino is under a federal obligation to generate a REPORT when the win exceeds $9999. Report is required for table and machine wins.

[BruceinGa]

Let me get this straight, I need to keep a log containing casino name, address, beginning time, ending time, machine number(s) and net gains or losses?
Of course this is needed only after I hit my first rf
 

[cddenver]

It's really nice that NV does not have any state income tax. Makes life a whole lot simpler.
 
"Har, har, har" to you and oej for laughing at me for my audits.  Oej, do it again and I'm siccing the IRS on you for those questionable "business expenses" () for the Gulfstream. 
 
I really don't know what the problem with Colorado is - every year, it's the same thing.  Send them the paper copies of W2-G's, and that's that.  I started e'filing to cut DOWN on paperwork.
 
 

[shadowman]

Let me get this straight, I need to keep a log containing casino name, address, beginning time, ending time, machine number(s) and net gains or losses?
Of course this is needed only after I hit my first rf
 
 
Yes, isn't it great?
 
On the other hand, if you play enough you know the w2gs will come and it's better to be prepared. I've saved 10's of thousands in taxes over the last few years so it is definitely worth the time and effort for me.

[oej719]

Cd actually a smiley face was because I posted under the wrong topic and it would not let me erase everything. So I said I will just in a smile and delete my message.
Me and the IRS are good. I pay them and they let me be.

[cddenver]

Cd actually a smiley face was because I posted under the wrong topic and it would not let me erase everything.
 
Oh, okay.  I won't spill the beans to the IRS about the Gulfstream, then.