A question Regarding Taxes

[jstnrgrs]

Last year, I made two large deposits into my bank account from winnings on party. One was $3800, the other was $1100. In addition to this, I made several deposits and withdrawals which were each less than $1000. I have no session by session records, so I am not sure what to claim for winnings and losses. ( I am debating weather to claim them at all.)

I have a few questions

1. What are my chances of being audited? (This is the first year that I have been employed full-time. It is also the first year that my parents will not claim me as an independent.)

2. If I am audited, will the IRS have access to my bank records?

3. Since I do not have records of my wins and losses, how should I claim them?

4. Will claiming gambling wins and losses increase my chances of being audited?

Any help is appreciated.

[The Dude]

Taxes on gambling winnings can be a bit complicated, to say the least, but I hope this comes through clear for you.

1. Slim to none.

2. Yes, and they will use anything they can against you.

3. Well, there are two issues with this one.
(a) Why don't you have records? Is it really that hard to purchase PokerTracker (I think it's like $45/ yr)? Your game will improve that much from having the info, and you will have accurate records.

(b) The "correct" answer here (according to the IRS) is make your best estimate. The IRS will have no way to be 100% sure either, so as long as your estimate is reasonable, they probably won't challenge it.

4. I believe so, but not enough to worry about it. The risk of having to explain why you didn't report your winnings at all is greater than the increased liklihood you will be audited.

I used to work in sales for a tax firm (we did not specialize in gambling, to say the least), so I know some. However, considering I am not an E.A. or Tax Attourney, I will stop short of anything further.

Moral of the story: keep records this year. /images/graemlins/grin.gif

[Redhot_man]

[ QUOTE ]
Last year, I made two large deposits into my bank account from winnings on party. One was $3800, the other was $1100. In addition to this, I made several deposits and withdrawals which were each less than $1000. I have no session by session records, so I am not sure what to claim for winnings and losses. ( I am debating weather to claim them at all.)

I have a few questions

1. What are my chances of being audited? (This is the first year that I have been employed full-time. It is also the first year that my parents will not claim me as an independent.)

2. If I am audited, will the IRS have access to my bank records?

3. Since I do not have records of my wins and losses, how should I claim them?

4. Will claiming gambling wins and losses increase my chances of being audited?

Any help is appreciated.

[/ QUOTE ]
I would just look at my "account history"-- report the neteller withdrawals, and let the check withdrawals slip.