Who Reports Their Winnings As Income?

[Oski]

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I played HE with a guy a casino one time who asked a lawyer about reducing the amount of taxes he had to pay on his winnings. The lawyer told him to withdraw a bunch of money from an ATM every time he went to the casino and keep a receipt for it. With cash payouts, there is no way the IRS could prove that you DIDN'T lose the money gambling.

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That seems a bit sketchy/urban legendish. Lawyers get disbarred for recommeding illegal actions to thier clients. Not to mention in tax court, the burden of proof for a lot things are with the taxpayer not the irs.

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Nothing illegal here. The lawyer merely stated that the client should take out a large amount of money and keep a receipt. What the client does from there is left to the imagination.