1. Identify the casinos.
2. Keep all gambling-related financial information, such as bank deposit/withdrawal stmts., marker transactions, etc.
3. If you have casino won/loss stmts. make sure they match exactly with your personal gambling log totals or you will encounter trouble. The log always takes precedence, but providing two different sets of numbers will raise an IRS red flag.
4. In my 1st audit I made the mistake of offering too much info in the form of all my cashback, comps, etc. Luckily the auditor told me that type of "income" was not necessary to report. In my next two audits I left that info out--and the amounts were significant. Not a word was said or asked about it. I think it was Tom here who said his audit somehow included that stuff, so it's good to at least be prepared to discuss it since there seems to be inconsistent approaches by different auditors.
5. Never worry about having an audit, especially if you're properly prepared. Most people don't have them.
----- Reply message -----
From: "Ted" <ted.troccola@gmail.com>
I am wondering what everyone does to prepare themselves for a possible IRS audit.
