Busted by IRS now i owe back taxes on winnings

[Seattleallstar]

I failed to report my taxable winnings from horse racing, now i have penatlies to pay. My question is i got my account summary and it obviously shows I lost much more than what I won, will it offset the gambling income and ill just owe for the penalty?

Any help or advice would be greatly appreciated

[blackthroatedwind]

If you have account information that includes your signers, but shows you were a net loser, you should be fine. I guess you may have to pay a penalty but the account info should validate your net position.

[Seattleallstar]

thanks black, for the year in question it defintely showed that i wagered more than i won, but what concerns me is that they show how much i won vs only what was taxable, I hope the IRS reailzes that only a miniscule part of the winnings was taxable/signers

[blackthroatedwind]

Originally Posted by Seattleallstar

thanks black, for the year in question it defintely showed that i wagered more than i won, but what concerns me is that they show how much i won vs only what was taxable, I hope the IRS reailzes that only a miniscule part of the winnings was taxable/signers

They'll understand.

In the future you just have to itemize. Basically on one line you put the total winnings ( just total signer amount basically works ) and on the other losses up to the amount of winnings. If you were a net winner, you still write off loses against the winnings to get to the final result. If you lost for the year.....zero is the number that matters.

You should be fine.

[zippyneedsawin]

Originally Posted by blackthroatedwind

If you have account information that includes your signers, but shows you were a net loser, you should be fine. I guess you may have to pay a penalty but the account info should validate your net position.

LOL.. isn't that a given? Just kidding, Seattle, I couldn't resist...

I am reading this correctly...
No derision, no snide comments.
Helpful information.

I must be on the wrong board.

[westcoastinvader]

Originally Posted by blackthroatedwind

If you have account information that includes your signers, but shows you were a net loser, you should be fine. I guess you may have to pay a penalty but the account info should validate your net position.

My first wife used to have a bit of embarrassment when we visited the accountant for our tax prep and I tossed my signers down to list on the taxes.

Apparently making $$ was good, but making $$ from gambling was something not be made known in "good social circles" or something.

I was always kinda proud of those signers.



(my current wife loves 'em.....she laughs and shares stories with friends about my occasional gambling prowess....)

[blackthroatedwind]

Originally Posted by westcoastinvader

My first wife used to have a bit of embarrassment when we visited the accountant for our tax prep and I tossed my signers down to list on the taxes.

Apparently making $$ was good, but making $$ from gambling was something not be made known in "good social circles" or something.

I was always kinda proud of those signers.



(my current wife loves 'em.....she laughs and shares stories with friends about my occasional gambling prowess....)

One of my ex-girlfriends, who's very cool, spent her summers in the Hamptons ( obviously without me ) and her friends used to give her a hard time about me being a horseplayer and hanging out at the track. She was very happy when they once snidely asked her how I was doing at the track and she got to tell them I hit a Pick-6 for $141K a few days earlier.

They stopped asking her about me.

[westcoastinvader]

Originally Posted by blackthroatedwind

One of my ex-girlfriends, who's very cool, spent her summers in the Hamptons ( obviously without me ) and her friends used to give her a hard time about me being a horseplayer and hanging out at the track. She was very happy when they once snidely asked her how I was doing at the track and she got to tell them I hit a Pick-6 for $141K a few days earlier.

They stopped asking her about me.

Great story!


Especially good with the "spent her summers in the Hamptons" detail!

True story, I was in a bar with some horse players a few days ago and was razzing some guy in his mid-20's when he inquired about a bottle of "chartreuse" that had somehow made it behind the bar in this non-uppity establishment. It was one of those great gambling story and trivia sharing late afternoons, and the totally cool kid let me know that "chartreuse" was a favored drink component of F. Scott Fitzgerald (The Great Gatsby guy). Points to the kid. I was impressed with the off the cuff trivia.

He knew nothing of Nashua and the Woodwards, however.

[asudevil]

Originally Posted by blackthroatedwind

One of my ex-girlfriends, who's very cool, spent her summers in the Hamptons ( obviously without me ) and her friends used to give her a hard time about me being a horseplayer and hanging out at the track. She was very happy when they once snidely asked her how I was doing at the track and she got to tell them I hit a Pick-6 for $141K a few days earlier.

They stopped asking her about me.

Her friends sound like typical Hamptons crunts.

[philcski]

Originally Posted by asudevil

Her friends sound like typical Hamptons crunts.

I hate those types with a passion after working on Wall St for nearly 10 years.

[gales0678]

Originally Posted by blackthroatedwind

One of my ex-girlfriends, who's very cool, spent her summers in the Hamptons ( obviously without me ) and her friends used to give her a hard time about me being a horseplayer and hanging out at the track. She was very happy when they once snidely asked her how I was doing at the track and she got to tell them I hit a Pick-6 for $141K a few days earlier.

They stopped asking her about me.

i'm going to take a stab , was it Lizzie .... Lizzie Grubman?

[the_fat_man]

Originally Posted by Seattleallstar

I failed to report my taxable winnings from horse racing, now i have penatlies to pay. My question is i got my account summary and it obviously shows I lost much more than what I won, will it offset the gambling income and ill just owe for the penalty?

Any help or advice would be greatly appreciated

If, in fact, you lost for the year, why would you pay a penalty?

[Seattleallstar]

Originally Posted by the_fat_man

If, in fact, you lost for the year, why would you pay a penalty?

cause its back tax from 2007 filing

[docicu3]

Originally Posted by Seattleallstar

cause its back tax from 2007 filing

If you can document you have a net lost for the year in 2007 then you are starting with no tax owed from 2007.

There are no penalties for not reporting taxes you don't owe. You have to be careful that you can document your losses and that the pattern of your wagers is consistent to get credit for your loses to offset the capital gains of winnings. There are several suits here that can give you more detail if you need it.

[Seattleallstar]

so basically all i have to do is show the documentation I already have that I lost more than what i won that was taxable, and all i will owe for are the penalties?

[blackthroatedwind]

In general, while the account info is great, and probably enough, the best thing you can do going forward is to keep a daily diary of profits and losses.

[Holland Hacker]

Did you itemize you deduction in 2007? If so you may have to file and amended 1040 to show the higher income and higher itemized deductions which should net to close to zero, assuming you dodn't have a huge amount of winnings.

Just a heads up that if you plan on using your statments to substantiate / document the fact that you did not come out ahead for the year, you should probably be prepared to include ALL of your winners and not just the ones covered by the w2G. If you had a lot of winnings it may change your tax by way of phaseouts, limitations etc as your AGI will be higher.

PM me if you want some assitance or need help figuring out the tax you may owe.

[the_fat_man]

Originally Posted by Seattleallstar

cause its back tax from 2007 filing

if there's no income for the year then there are no back taxes

[Rupert Pupkin]

Originally Posted by Seattleallstar

I failed to report my taxable winnings from horse racing, now i have penatlies to pay. My question is i got my account summary and it obviously shows I lost much more than what I won, will it offset the gambling income and ill just owe for the penalty?

Any help or advice would be greatly appreciated

As others have said, I think all you need to do is get a year-end summary from TVG or whoever you bet with. Your year-end summary will show that you lost for the year and you shouldn't owe anything. I don't think you will owe any penalties either.