[moondogg]

[ QUOTE ]
I might be a really good player who is really bad at keeping records. Now at the end of the year if I want to pay my fair share, what do I do? The only thing I can do is make my best guestimate as to how much I won. The IRS has no way of disproving this. How could they? There are no records anywhere.


[/ QUOTE ]

Sure there are records. If you get audited, they can ask for a copy of your Neteller records, and you don't have the option of saying no.

As I understand it, in a deep audit, they look at the money going in an out of sites, and attempt to figure it out for you, developing their own estimate of what you owe. This estimate will almost certainly be favorable to them. At that point it is your responsibility to pay according to their estimate or disprove their estimate. By your own admission, you don't have the evidence necessary to truly prove or disprove anything.

Generally speaking, people (even gamblers) are not as likely to get audited that deeply. More often, they will just ask for some more information/evidence to support what you reported. But if they call you and your answer is "I don't have any records", I'd say you are a lot more likely for a deep audit, and rightfully so.