Dumb tax questions.

[Joe Taylor]

I record both rakeback & bonuses as seperate "session" income. I don't mix it with session win/losses, as it is rare for me to run one single session and receive a bonus at the end of it... since it is often spreads across multiple sessions, it just makes more sense for me to keep it seperate.

[broiler]

The answer to your first question is that you will pay only the additional tax plus interest and penalties. The amount over the additional tax will be more than you might think since the IRS has an uncanny ability to wait about 2 years before assessing the additional tax. Of course, the interest and penalties are calculated back to when you were supposed to pay that tax. The effect of the wait is usually around 50% of the additional tax. If the additional tax was deemed negligent, the interest and penalties are in excess of 100% of the additional tax.

The answer to your second question is that rakeback/bonus money is income. The amount of bonus or rakeback is contingent upon the amount and/or level that you play at the given site. Therefore, the IRS will look at these payments as gambling source income.

As a professional gambler can someone write off gambling books? Computers/monitors? Gas to casinos? Money spent on food while at casinos?

[Jimbo]

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rakeback is undoubtedly income, unfortunately

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Only if you're a winning player. If you're a losing player, it is simply a partial rebate of fees paid, and is not income.

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Absurd reasoning.

[MyTurn2Raise]

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As a professional gambler can someone write off gambling books? Computers/monitors? Gas to casinos? Money spent on food while at casinos?

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yes...that is one of the benefits of gaining professional gambler status. As well as 1040schedule C is pretty easy to use.