The IRS Audit Blog

Posts Tagged ‘gambling’

Question: IRS sweating me?

I’ve become the lucky chosen victim of an audit for the year of 2006. I think my donation deductions may have tipped them off or something. Anyway, they want proof of my deductions and questioning my head of household status. Well, I can prove my deductions but I’m concerned about the head of household issue. They want to see a copy of my townhome lease agreement but my lady is on there too. Since we’re not married we of course file seperately and she files head of household also. Would that bring her in the picture to be sweated by the IRS because I don’t know if two people can be head of one household. I’m gonna just take one behind the bushes on the head of household issue and just pay that portion back if she’s at risk. What’s the JettMan to do??
Sorry for being so vague. My lady and I have a son together so she files him. I file my two other children from a much much previous relationship, which I have done for years now in agreement with the mother.

Answer: I don’t see any problem.
You and your lady both rent a townhome, and share the rent. (It is always better economically to rent a bigger apartment than renting two small apartments).
You are not married.
Each one of you supports a qualifying child. You support your two children and she supports her son. Both of you have paid more than half of the expenses of keeping a home.
So both of you can put your status as Head of household.

Clark Atlanta defends million-dollar presidential payout

Clark Atlanta defends million-dollar presidential payout

Bruce Hacker, CPA – Advice for REALTORS – S Corp

Question: Question about poker winnings?

Hi, I just recently turned 21 yrs old, and I have been playing Texas hold’em since i have been around 16 or so. I have quite a bit of experience, and I am looking to start playing more often. I went to a casino nearby the day after my 21st birthday and won minimal (like 30 dollars or so), and just out of curiosity, around 2 days ago I started playing online poker. I only bought in for around 25 dollars, but I got up to around 180 before falling back to around 115$. I was just wondering if this is major for not filing taxes on, and what I need to start doing for future play? Also, I was wondering what one must do before getting audited by the IRS? Any information is welcome because I’m new to the whole gambling/paying taxes on it thing. Thanks in advance for your input.

Answer: As a general rule, you don’t have to worry about gambling winnings until you hit $10k in the US. All gambling winnings over 10k are reported to the IRS, and if you deposit a check over 10k, the bank also reports that to the IRS.

Once you are over that threshold, and winnings are seriously large, you should start documenting your gambling more carefully. At this stage, you should consult an accountant.

Don’t be fooled by tax code myths

The U.S. tax code is massive and complicated — the perfect fodder for myth-making.Perhaps the most well-worn fallacy — shot down by many courts despite the best efforts of tightfisted taxpayers — is that federal taxes are actually illegal.It’s an argument often used by people who have turned to Tax Masters, which helps filers in trouble with the IRS, says company president Patrick Cox. Some …

Tips for Filing Taxes : Gambling Winnings Tax Tips

Question: If gambling, does all winnings get reported to the irs?

i havent had a job yet so ive never had to fill an irs form out. will i have to if i join a betting site?

Answer: No, these are off-shore companies that report nothing at all to the IRS. If you cashout sums greater than $5,000 directly to your bank account, then your bank will report that activity to the IRS. Keep your withdrawals small or offshore as well and you will have no problems. If you do make a huge withdrawal then simply claim is on your taxes at the end of the year, but you can claim your losses against it.

Rife with myth

People believe in some pretty incredible things when it comes time to pay federal taxes. (Don’t be one of them.) The U.S. tax code is massive and complicated – the perfect fodder for myth-making.