I have been using the session method for several years. My gross winnings on my 1040 are always significantly less then the sum of my 1040G's. I was audited a few years ago which was a small business audit. After looking at the business they began to question my gambling winnings. After several conference calls with the agent and her boss, educating them on the session method and providing copies of my gambling log and other requested information the audit was completed with no changes to my return. My accountant includes with my taxes a list of my W2G's provided from each casino and a detailed explanation that I am using the session method for my gambling winnings. After using the session method successfully for a few years, I filed an amended return for one year just before the tax deadline. The feds send me a check within few months due to my lower AGI while the state denied my claim stating that gambling winnings cannot be deducted on your 1040. I appealed the denial. A few months before the court date I called the state attorney. After several calls and providing detailed information we settled on approx 65% of what I was requesting. The amount was substantial so for me in was worth the effort. Everyone needs to decide the amount of risk they are willing to take and this approach is not right for all gamblers. In my case the dollar amount justified the risk and I was successful. Joel ----------------------------------
Posted by: joel0457 <joel0457@yahoo.com>
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