Gambling

[Earl]

Since IRS requires a schedule or log of gambling activities do you require the
client to bring his log to you or just take his word that he has one and that
he had losses. If he says he does not have a log do you still take the losses
on Schedule A up to amount of winnings. Just wondering whether we should
be as strict with this as we are with automobile business logs.

[JohnH]

I like to see their log, and i make a copy of it for my files. If they don't have a log, I have them sign a strongly worded statement.

[JMO]

Always Request the Log

Yes, you should request to see the log detailing the client's gambling activity. If the client does not have one, then no deduction should be taken for the gambling losses. Better to deal with the issue now, then on audit.

[taxea]

I ask for a win/loss statements from the casinos they gambled at.

[TAXNJ]

Prior posts

Reference:

https://www.irs.gov/taxtopics/tc419.html

also, see last paragraph "record keeping" to help with your decision

Many other posts on this topic, e.g. 4-15-15 Gambling winnings post

[Jiggers]

The IRS doesn't address the issue in Chief Counsel memo AM2008-011, proposed Reg 2015-21, Shollenberger v. Commissioner, LaPlante v. Commissioner.

[TAXNJ]

Correct

The IRS doesn't address the issue in Chief Counsel memo AM2008-011, proposed Reg 2015-21, Shollenberger v. Commissioner, LaPlante v. Commissioner.

Good point c/o specific recordkeeping issue and the case you cite would think it be of interest to the Original Poster to review the "MEMORANDUM FINDINGS OF FACT AND OPINION" of this case.

[DonB]

Good point c/o specific recordkeeping issue and the case you cite would think it be of interest to the Original Poster to review the "MEMORANDUM FINDINGS OF FACT AND OPINION" of this case.

I ask for the casino players card win loss statement from casinos where the TP played. I've never run across anyone with any other records. In theory, I could rely on the TP's assertion they had records for their losses. Casual gamblers are almost certain losers for a given year. The more one gambles, the more certain are that you will be a loser.

[TAXNJ]

Ok

I ask for the casino players card win loss statement from casinos where the TP played. I've never run across anyone with any other records. In theory, I could rely on the TP's assertion they had records for their losses. Casual gamblers are almost certain losers for a given year. The more one gambles, the more certain are that you will be a loser.

Ok. Well you have some info in the reply posts and other info you may find on your own that may support your position and give a comfort level if issues arise.

[taxmcp]

I like to see their log, and i make a copy of it for my files. If they don't have a log, I have them sign a strongly worded statement.

Would you share your strongly worded statement or are they top secret words?

[TAXNJ]

Now....

Would you share your strongly worded statement or are they top secret words?

As far as the last part of your comment, whether it is private or not, as a Professional you should be able to decide what info (and how to word it) you need from your client rather than copying from others.

[geekgirldany]

I thought I posted last year on a similar topic but I can't seem to find it.

New client previous preparer did not put down the correct amounts from the W-2Gs. Only entered net winnings/net losses. Client got letter changing the tax return which did not include the losses. I got the win/loss records provided by the Casino and sent those into the IRS. Client ended up paying about $3,000 instead of $15,000 (round numbers). Of course if it came down to it the IRS could have requested more information like a log. Thankfully they took the win/loss statements from the casino.

Just thought I would share one of my experiences.

[Jiggers]

I also have used the Win/Loss statement that showed the daily IN/OUT activity.

I wonder why the Coushatta Casino in Kinder, LA has switched from providing that type of log to a statement that shows just the total net for the year and the amount of any W-2G's. Not enough information to use.