W2-g

[whkrueg]

I've got a customer who came in with a W-2G that had large enough winnings where tax was withheld. The problem I have is that there is an area on the W-2G that should be signed by the tax payer at the time he was given the W2-G. On this W-2G it is unsigned. Should I accept this W-2G, it seems kind of fishy to me.

The reason is that because of he is claiming a loss for the entire gambling winnings. The additonal tax witheld it causes the client to get a bigger refund than he would have had from just his income.

What do you think?

Thanks/Wayne

[DaveO]

Ask to see records supporting the losses. I think you have to take the W-2G at face value as long as it's made out to him.

[whkrueg]

W-2g

I did ask him if he had proof, of course he did not. He thought he could get it from the casino if needed. Most people I've seen with gambling losses do not have the paperwork to prove it unless they used a players card and was able to get a win loss statement from the casino. This guy claims he lost on Blackjack, I don't think the casinos keep a record for that. It is easier on the slots.

Thanks

[David1980]

I'd explain what he needs to have (daily record) if audited to substantiate the loss. I do not make them show me the record though.

As far as the W-2G, you could mark it as nonstandard. Also the IRS will obviously have records as to whether or not the tax was withheld, when they do the matching (not til later in the year) if the withholding is bogus they'll try to go after the taxpayer.

In the end, if you're not comfortable with the return don't feel obligated to preparer it. There's nothing wrong with not preparing someone's return.