All taxpayers, including gamblers, have exactly 30 more days to file their returns. Any gambler who has yet to file and had a big win last year could be headed for trouble.
Berkeley, CA (PRWEB) March 18, 2011
All taxpayers, including gamblers, have exactly 30 more days to file their returns. Any gambler who has yet to file and had a big win last year could be headed for tax trouble.
This is because casinos and other gambling establishments must report large gambling winnings to the IRS.
Every year, the IRS receives over four million tax forms from casinos and other gambling establishments reporting gamblers’ winnings. These four million plus gamblers must address their winnings on their tax returns or face an IRS audit. Few gamblers know how to do this. Even most tax professionals have little understanding of the many unique aspects of gambling taxation.
Gamblers who don’t understand and follow the rules can end up owing taxes to the IRS, even if they lost more than they won during the year.
Don’t believe it? It happens all the time, particularly where gamblers have isolated big wins. In one case, for example, Bill Remos, a Coca-Cola delivery driver in Chicago, won $50,000 in one game of blackjack. He lost more than he won during the year, so he figured he didn’t have any gambling income to be taxed. Makes sense, doesn’t it? Not to the IRS. Remos was audited, and, because he couldn’t document his losses, the IRS said that he had to pay income tax on his entire $50,000 blackjack win. He ended up owing the IRS $17,000 in back taxes. This on an annual income of only $32,000!
Bill Remos found out about the gambling tax rules the hard way. All In Against the IRS: Every Gambler’s Tax Guide, just published by Pipsqueak Press, gives gamblers the information they need to avoid his unhappy fate. This easy-to-read up-to-date guide explains everything gamblers need to know about taxes, including:
- how gambling winnings are taxed
- when winnings are reported to the IRS by casinos
- when and how much tax is withheld from gambling winnings
- how to report winnings and document losses
- the myths and realities of taxation of internet gambling
- completing tax returns showing gambling winnings
- state income taxes on gambling, and
- how to qualify as a professional gambler.
The information in this book applies to all forms of gambling, including:
slots, blackjack, craps, roulette, internet poker, poker tournaments, horse racing, keno, lotteries, bingo, raffles, sweepstakes, and sports betting.
All In Against the IRS: Every Gambler’s Tax Guide
By Stephen Fishman, J.D.
Pipsqueak Press, Berkeley, CA
ISBN: 978-0-9832907-0-4 (trade paperback)
$9.95 ebook; $12.95 print-on-demand
Available at: Amazon.com (http://www.amazon.com/All-Against-IRS-Every-Gamblers/dp/0983290709/ref=sr_1_1?ie=UTF8&s=books&qid=1300238709&sr=8-1)
FOR ADDITIONAL INFORMATION and to contact Stephen Fishman for interviews:
Michele M. Horaney APR
Publicist for Pipsqueak Press
Stephen Fishman is a San Francisco Bay Area-based attorney and award-winning author.
He earned his law degree from the University of Southern California in 1979.
Fishman has worked in government and in private practice, specializing in small business, tax, and intellectual property law.
He is the author of 19 books, including Deduct It: Lower Your Small Business Taxes, Tax Deductions for Professionals, and Easy Ways to Lower Your Taxes.
Fishman also is a columnist and speaker on legal issues dealing with taxes and small business.
He has been quoted in the Wall Street Journal, New York Times, Chicago Tribune, San Francisco Chronicle and many other publications.