I have a client who has large amount of gambling loss every year (more than 10K) and he claims it against his gambling win. I explain the requirements of the gambling loss record keeping to him and gave him a copy of the page in Pub 17 about gambling loss every year. When I ask him whether he keeps the record or not, he nods and tells me 'yes' every year. But then I still type a statement which says he has been explained the requirements of the gambling loss record keeping according to Publication 17 and have him signed it. Have I done enough? What else would you do to cover your back?
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Since it occurs every year, you could ask him for a copy of those "records," and see what happens. They are often available from the gambling establishments. Is he getting W2-G's? -
You're doing as much as I would do,
I see no problem for you. Something I also do is add a paragraph to the client letter that goes with their copy of the return, that says something about theIRS documentation requirements and it is the client's responsibility to maintain those records for at least 7 years. One auditor commented that it was fair warning to the client."A man that holds a cat by the tail learns something he can learn no other way." - Mark TwainComment
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. I would also ask him to provide a win/loss statement from each casino. If it doesn't add up to his claim of losses,I would ask him to provide a copy of his records so that I can detail each individual loss per casinoOriginally posted by AccTaxMan View Post
Any frequent gambler that doesn't use a casino card isn't very bright.Believe nothing you have not personally researched and verified.Comment
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Don't bet against the house
If he gambles in a casino consistently, he will lose more than he wins. He can only deduct an amount up to his winnings.Comment
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I thought that was a given.Originally posted by taxxcpa View PostBelieve nothing you have not personally researched and verified.Comment
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