Speaking of gross winnings, does anyone know whether it is too late to
submit Form 5754 (to divide winnings) after a W2-G has been issued by a
casino; or can they cancel the W2-G and reissue W2-Gs to those named on the
form?
On Tue, Jan 6, 2015 at 8:54 AM, harry.porter@verizon.net [vpFREE] <
vpFREE@yahoogroups.com> wrote:
>
>
>
> That's an important clarification, Joel. Thanks!
>
> This gets into the stickiness of "session reporting". misscraps has shared
> extensively the problems she encountered when, in employing session
> reporting, her return showed a smaller value for "gross winnings" than was
> reported in w-2g's. In her case, the IRS wouldn't buy onto it and required
> an amended return.
>
> Without delving into this in detail, a netting of session losses against
> w-2g reported wins and reporting a reduced amount is a red flag for the IRS
> and perhaps best avoided. (On the other hand, if other session wins during
> the year are sufficient to offset the w-2g session losses, so that return
> reported gross winnings equals or exceeds the w-2g total, then not only is
> this reporting not likely to be problematic, but I see such reporting as
> being more consistent with general IRS guidance.)
>
>
>
> ---In vpFREE@yahoogroups.com, <joejavinn@...> wrote :
>
> Harry, you make the exact case that I did in my original post: you can
> only
> claim a loss of actual cash played/put into the machine. Taking out more
> than you put in, however that happens, is a win in the amount of the
> difference. However, in saying the IRS would probably not have a problem
> with his process, you overlook the part where Jim suggests that he might
> get a W2G, play part of the hand pay back, and report what is left as a
> win. It has always been my understanding that claiming less than the total
> of all W2G wins as your gambling win on you income tax is begging to be
> audited, and clearly not a method the IRS accepts. I realize that Jim was
> posing a hypothetical which he doesn't think would happen to him because
> of
> his choice of games. I am certain that you and I do not want to ever
> suggest a process that would get another person on this board into tax hot
> water, so I thought clarification was in order.
> Joel P.
>
>
> [Non-text portions of this message have been removed]
>
>
> [Non-text portions of this message have been removed]
>
>
>
[Non-text portions of this message have been removed]
Posted by: Richard Gordon <theolflash@gmail.com>
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