It basically just gave you the date and length of play on each machine and total win/loss for that session. I've worked with the casino via my client to obtain detailed data regarding win/loss, however they still only provided a win/loss total by machine. I'm familiar with one person that had a reasonable amount of gambling winnings/losses on a return that was audited and the auditor accepted the win/loss report and moved on. The research I've done on this points to the IRS not being particularly aggressive about gambling loss when it comes to an audit. Which is why I told you the way it's handled in practice. Unless he keeps the journal log of bets/winnings as required by the IRS (which nobody in their right mind will do for slot play) you really don't have much to go on for preparing the return or an audit. I want to know how you would practically report this on the tax return. So how do other tax pros handle this scenario? Don't give me an IRS publication, I already know what the IRS says. (This annoys me because the casino knows his winnings and losses with his player card, but refuse to give the client this information). Casino replied they are only required to report W-2Gs for winnings over $1,200 and they fulfilled their obligation, and that it is the client's responsibility to log their transactions. I contacted the casino and asked if they could provide me with a log or report of his gross winnings and losses so I can report them appropriately on the tax return.

Has no idea what his winnings were that were not reported on W-2Gs.Ĭlient always uses his player card when gambling. He did not track or log his wins or losses. Obviously, client had tons of winnings that were not reported on W-2Gs.Ĭlient owns a business and has AGI before gambling winnings of $400,000. I have a net win/loss statement from casino of -$70,000.

Received over 100 W-2Gs which summed to $150,000 in gross winnings. Client decided to spend 2018 in the casino.

Reporting gambling winnings to irs