How Many W-2 forms

[S T]

How many W-2G forms can you enter?
I just opened a mailin client, and I am not liking what I am seeing, I will be here for hours!

And then to figure the losses allowed

And I am sick at my stomach as I just entered an $83,000 distribution from a retirement plan.

I do believe I have a client that has gone off the deep end and is hooked on the Califonria Indian Casinos!

Oh dear!

Sandy

[David1980]

The maximum number of W-2G for efile is 30. Anymore than that and it has to be sent in.

[BHoffman]

High Rollers

Just got a call from a couple of guys who didn't give me about $40k in 2006 W2Gs and now IRS would like the taxes please. One of the wives called and said they were heading to the casino as we speak to get some sort of letter of winnings and losses. She complained bitterly about how much he loses. Now they will probably be paying tax on at least part of the winnings.

[S T]

Thanks

UGH! I thought stock trades were bad!
This one is the "pitts"

Sandy

[JohnH]

Over time, you'll have some NC clients who are also hooked on the Indian Casinos (or others) as well. I also have some that fit your description of this client's situation - very scary.

[JohnH]

I had a guy who for two years running failed to report all his W2G winnings. When the IRS letters came, he produced additional loss info and we sent in a changed Schedule A. IRS accepted the Schedule A both times with no questions asked. One of the times he offset and additional $8K of earnings with more losses. I held my breath, but the changes were accepted. In both cases he produced a diary: the casino win-loss statements are useless.

[S T]

This one is sad

These have been long time Calif clients of mine, and over the last 5 years, I began to recognize a pattern, and I do believe the wife is hooked. She gets a high, and she was sure hitting a lot of jackpots in 07, I have never seen so many W2-G's in all of the years that I have been preparing taxes.

Clue, cashing in $83,000 on her 401K, fortunately she was smart enough to know that there is no early distribution penalty as she is over 59.5, but all the indicators are there, that it is spiraling downward, so what is next, more money out of the house.

This is a professional that makes over $125,000 a year with benefits and some years some really good bonuses. She won't be able to sustain once she gets to retirement!

John, I am still naive about NC, and haven't ventured out much, I didn't know there were Indian Casinos here as well!

Okay I can't play psychologist or Gamblers "A", so back to work! I am just a little "sick to my stomach" after reviewing this clients paperwork.

Sandy

[Lion]

Sad

That's sad, Sandy. Clients bare their financial souls to us, whether they mean to or not, so we can prepare their returns. So, sometimes we see things we'd love to fix. It does bring out our maternal instincts, doesn't it?

Do all the W-2Gs have withholding? If not, you can lump some or all together for easier data entry. If you're over your software's limit, you'll HAVE to lump some together. As long as the sums of the winnings and withholdings from the W-2Gs add up to the totals on the return, it doesn't matter how you enter them -- I'm guessing since I don't know your software.

[S T]

thanks Lion

At least I can try to enter that way , as I only have about 4 Casinos, but multitudes from each.

So if I can input as a total, and efile will accept that might work.

No withholdings, then I get to work through the gain/loss reports from the casinos, so we will see how that plays out for the losses the t/p wants to take. I am sure it is a loss if they cashed in part of the 401K money, just have to present properly on the tax return.

I have no time right now for this nonsense! Being this close to the 15th.

Sandy

[Lion]

It's late in more ways than one

I saved the hassles until last, and the crazy ones come in in April, too. It's late and we ladies are on east coast time now. I gotta get some sleep. Let Dennis sit up and stew over his UPE on west coast time. Sleep tight all.

[JohnH]

John, I am still naive about NC, and haven't ventured out much, I didn't know there were Indian Casinos here as well!

Okay I can't play psychologist or Gamblers "A", so back to work! I am just a little "sick to my stomach" after reviewing this clients paperwork.

Sandy

Sandy:
I'm referring to the casinos on the Cherokee reservation in the NC mountains west of Asheville. But then I remembered you are in Eastern NC, so from there they tend to go to Atlantic City.

I have at least a couple of situations that make me wonder if they are heading down the same path you are describing. I definitely see them as playing with fire.

Recently I was once again explaining the recordkeeping rules and why the casino "win/loss" and "coin out" reports are worse than useless. The client responded that the IRS is taking away "the only thing they enjoy in life". I held my tongue, but couldn't help but think what a sad comment that was.

[Matt Sova]

Useless?

the casino win-loss statements are useless.

How are they useless? I have a client that received a letter from the IRS stating that they wanted proof of their gambling losses. We sent them the casino win-loss statements and it resulted in no change.

I would say that they are not exactly "useless".

[JohnH]

II'm not questioning your experience - I've seen them accept some pretty flaky info myself in the past. But don't count on IRS always accepting the win-loss statements in the future. Especially if the W2-G totals are significant.

[ChEAr$]

One client

who had taken a large 401k distribution and lost vast majority of it over in Mississippi,
said that she was undecided whether or not to go back this year. So I suggested to her
that she should decide in advance the maximum amount she could afford to lose. Since
she already had name and address of the casino, she could save time and travel expense
by simply writing a check and mailing it to the casino.
She got my point.

[JohnH]

Great idea !
May I try it out on a couple of clients?

I already tell several of them that their odds of winning the lottery are about the same whether they buy a ticket or not.