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#1
04-05-2005, 04:17 AM
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Is Following the IRS\'s rules asking for trouble?
I have very hard time filing the correct way of declaring all wins and then itemizing my losses as a deduction. I think this declaration of losses sort of stands out like a blinking light. If you just declare winnings, then thats all gravy for the IRS, and as a 19 year old, they probally wont think too much about it. But once you start putting down a big number on the deductions space, that might trigger them to ask you questions. I have insignificant records. I have, of course, everything through my bank account and neteller. So if I was audited, I could show that my numbers are more or less correct, and if it comes to it, Ill pay whatever penalties are required, but Id absolutely hate to get into a situation where youre asked to show proof of losses. I can only imagine some horible situation where they take your winnings number at word, then through out all your losses.
Is there a better chance of flying under the radar but not filing the correct way? 
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#2
04-05-2005, 04:23 AM
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Re: Is Following the IRS\'s rules asking for trouble?
It'd be interesting to get into the pysche of an IRS auditor, but I cant imagine them looking twice at anything good for them. They'd be focused on people trying to take from them. So Okay this guy has gambling winnings, he might even had made a mistake and not declared his losses, lets not even go there cause its all gravy.
then john doe over here who is declaring 20K in losses, lets see it boy.
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#4
04-05-2005, 04:35 AM
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Re: Is Following the IRS\'s rules asking for trouble?
[ QUOTE ]
i dont see what your problem is. if you accurately track your wins and losses, and accurately report these on your taxes, you should have nothing to fear. [/ QUOTE ] That's exactly what his problem is. He hasn't accurately tracked anything and only has reasonable estimates.
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#5
04-05-2005, 04:44 AM
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Re: Is Following the IRS\'s rules asking for trouble?
[ QUOTE ]
[ QUOTE ] i dont see what your problem is. if you accurately track your wins and losses, and accurately report these on your taxes, you should have nothing to fear. [/ QUOTE ] That's exactly what his problem is. He hasn't accurately tracked anything and only has reasonable estimates. [/ QUOTE ] You can basically just report whatever came out of your accounts and be ok. There's no way for the IRS to see anything in any of your accounts.
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#8
04-05-2005, 05:15 AM
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Re: Is Following the IRS\'s rules asking for trouble?
[ QUOTE ]
You can basically just report whatever came out of your accounts and be ok. There's no way for the IRS to see anything in any of your accounts. [/ QUOTE ] This may be the worst advice in the history of 2+2. It is incumbent upon YOU to be able to document and prove your losses. If you can't then the IRS can basically have their way with you. The OP may or may not have a valid point on this. Not really sure and I'm certainly not one to be giving out tax advice or legal advice either. FWIW - I'm declaring my deductions (filing as a pro so I get to claim expenses like a business) and am keeping my fingers crossed that my somewhat shoddy record-keeping on this matter doesn't get me in too terribly deep. I'm not exaggerating anything though and am reporting truthfully so I feel okay about it...just am hoping they don't climb up my ass with a fine-tooth comb asking me for receipts on every single deduction on there. It's obvious that I'm not hiding additional money anywhere. I am still driving my 96 Chevy with 170k miles on it for crying out loud so there won't be too much for them to be suspicious of if I am investigated....but since I don't have receipts for everything and some of my daily-records are a bit shaky I am aware of the possibility that I am unable to back up every bit of information like I'm supposed to.
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#9
04-05-2005, 06:14 AM
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Re: Is Following the IRS\'s rules asking for trouble?
[ QUOTE ]
You can basically just report whatever came out of your accounts and be ok. There's no way for the IRS to see anything in any of your accounts. [/ QUOTE ] The IRS doesn't need to, because they can just disallow/not recognize your deductions unless they are adequately documented. As Microbob said, its your obligation.
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