If you are a gambler, this success story is for you!
Gambler Saves $60k in IRS Tax, Penalties & Interest
When this client retained our firm, he owed the IRS $61, 316.21. When we were finished, he owed the IRS only $820.65 thanks to our negotiations and the subsequent waiving of tax, penalties and interest.
Our client received a letter indicating an audit being performed on his 2016 tax return. His lack of gambling income declared raised some red flags! The client attempted to work directly with the IRS for quite some time. The IRS in turn, made an additional tax assessment of over $34k with another more $26k in penalties and interest!
The client gambled at casinos and was receiving IRS Forms W-2G but was not reporting gambling winnings on his tax returns because he had lost money overall. This is a common misconception amongst gambling clients that ultimately retain us. All gambling winnings must be claimed, regardless of whether money is lost or not. All loses can then be written off on IRS Form Schedule A so long as all deductions are itemized.
After this client retained our firm, we were able to negotiate with the IRS, reducing the $61,316.21 that he owed down to $820.65. If you received an audit letter from the IRS because of unreported gambling income, contact us for a free consultation!