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Posted by webmaster on August 6, 2007, 10:33 pm
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> webmas...@onfirebikinis.com wrote:
>> Recently the IRS notified me that they changed my 2005
>> return. They took my gambling winnings of $60,000, which I
>> had indicated on line 21 (Other Income), and decided to call
>> this self employment income. The result is a new tax bill
>> of $8,000.
>> IRS specifically states in their tax guide that gambling
>> income is to be stated on line 21. Thus, how can they now
>> justify calling this self employment income when I did
>> exactly as they reference in their tax filing instructions?
> After thinking about this some more, the questions are how
> did you win $ 60,000 and how much earned income did you have
> from your stated oddupation?
>
> The IRS has a fairly sucessful history of fighting claims
> of "Professional Gambler" as an occupation. There are no
> professional Lottery, Keno, Slots, or Craps players. But
> there are professional Blackjack and Poker players. In the
> latter two, you would have expenses to get to and stay at
> casinos - unless you were playing at home on the Internet
> or even worse running the game at your home.
>
> Without a full understanding of the facts, I suspect you're
> going to need a tax professional with audit experience!
>
> Adams' Rule #1: NEVER represent yourself before the IRS.
I appreciate all the responses.
I was notified by a letter in which I was given 30 days to
respond. The winnings came from sports betting, mostly
football. My income apart from the sportsbetting was only
around $12,000. When I state $60,000 in winnings that is
after subtracting all my losses.
Moderator:
If you're netting $60,000 a year from sports betting,
we need to become close personal friends. <g>
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