Gain Casino Declaration
2021年10月11日Register here: http://gg.gg/w6ntw
*Gain Casino Declaration Of Conformity
*Declaration Gain Casino En Ligne
*Gain Casino Declaration Of Independence
*Gain Casino Declaration Of Domicile
*Gain Casino Declaration Of 1763
*100% Bonus: 20x wagering on combined deposit and Gain Casino Declaration bonus total (% game weightings and play restrictions apply). Max bonus bet £5 (£10 live casino) 15 days to accept, 40 to complete. £5 bonus: After deposit bonus wagered, selected games only. 1x wagering, 7 days to Gain Casino Declaration accept, 7 to complete, max withdrawal from winnings £100.
*After reading An American Declaration on Government and Gambling below, please add your name by signing here. After four decades of unfulfilled promises, it is time for our government to end its partnership with organized gambling interests and to embrace a fundamentally different and higher vision of the path to American prosperity.
After reading An American Declaration on Government and Gambling below, please add your name by signing here.
After four decades of unfulfilled promises, it is time for our government to end its partnership with organized gambling interests and to embrace a fundamentally different and higher vision of the path to American prosperity.Gain Casino Declaration Of Conformity
The health and safety of our customers, our employees and all Ontarians remains a priority for OLG. Consistent with provincial orders which place the City of Toronto on lockdown effective November 23, 2020, the OLG Prize Centre at Yonge and Dundas Street in Toronto is temporarily reducing the number of in-person appointments per day as of 3 p.m. Saturday, November 21, 2020. Visitors to your facilities come in many shapes and sizes. They may be business guests, employee family members or potential new hires arriving for an interview. 5:12-1 Short title; declaration of policy and legislative findings a. This act shall be known and may be cited as the ’Casino Control Act.’ The Legislature hereby finds and declares to be the public policy of this State, the following: (1) The tourist, resort and convention industry of this State.
In short, after four decades of consistent failure, it is time for our government to get out of gambling and for gambling to get out of our government. We come together now to work for this change.
We will not be satisfied with small concessions, nor with measures that merely slow down the pace of government’s gambling expansion.
We hereby dedicate ourselves to a fundamental national reform –an America where no taxpayer dollar is used by government to lure citizens into gambling away their money and becoming slaves to debt; where no agency or entity of government depends on gambling to fund its activities; and where no legislature, whether in the name of economic development or raising revenue, passes laws to promote, sponsor, or enable gambling.
We realize that many of our current political leaders will oppose this reform. They will say that they can no longer resist the power of the gambling forces, that the spread of gambling is inevitable, and that the debate is over.
We also realize that some of our fellow citizens, worn down by the relentless encroachments of the government-gambling partnership, will say that our cause is hopeless.
It is anything but hopeless. We are a free people who can reform our government and change our ways.
This is a critical moment. How our generation responds to the reach and arrogance of the government-gambling power structure will largely determine the quality of our social life in the coming decades.
Politically, economically, ethically, and spiritually, the stakes are extraordinarily high.
POLITICALLY: Government’s partnership with gambling fundamentally changes the compact between government and the governed. It pits government’s interests against the best interests of its people. For government to win, its citizens must lose.
ECONOMICALLY: No great nation has ever built prosperity on the foundations of personal debt, addiction, and the steady expansion of “businesses” that produce no new wealth. Relying on gambling as an economic development strategy is a sign of surrender and defeat on the part of leaders who have failed to lead.
ETHICALLY: A decent government does not finance its activities by playing its most vulnerable citizens for suckers, thus rendering the lives of millions expendable, exploitable, and unworthy of protection.
SPIRITUALLY: We mock the higher values that any good society depends on–honesty, mutual trust, self-discipline, sacrifice, concern for others, and a belief in a work ethic that connects effort and reward –when government tells its citizens every day that it is committed to providing “fun” instead of opportunity; that a rigged bet is the way to achieve the American dream; and that spending one’s hard-earned dollars on scratch tickets is a form of good citizenship.
This is America. Surely we can do better than this. Surely we must. The choice is not – it has never been – between tying our future to gambling and accepting economic decline. Government-sponsored gambling is itself a form of economic decline. The alternative is to muster the courage to chart a path to true prosperity. An America freed from the yoke of government-sponsored gambling would be an America once again on the move–an America with broader and more sustainable economic growth, more honesty in government, more social trust, and the rekindling of the optimism that has long been our defining national strength.
Therefore, with this Declaration, we set forth our reasons for seeking this reform and appeal to a candid nation to judge the truth of our argument.
Over the past four decades, how has government’s partnership with gambling failed?
*It has transformed gambling from a private and local activity into the public voice of American government, such that ever increasing appeals to gamble, and ever-expanding opportunities to gamble, now constitute the main ways that our government communicates with us on a daily basis.
*It has broken its promise to remain a small component of our government and a small part of our society. In the brave new world envisioned by this power structure–where every cell phone is a “casino in your pocket” and every bar, gas station, convenience store, computer, and home in the nation is a place to place a bet–the essential driving message from the American government to the American people is “All gambling, all good, all the time.”
*It has fueled irresponsibility and non-accountability in government by imposing a giant excise tax on the citizenry that politicians never have to call a “tax.”
*It has failed to deliver on its over-hyped promises to fund education, lower taxes, or pay for needed public services.
*It has taken political power away from the people and handed it over to gambling lobbyists.
*It has perpetrated a phony model of economic development–a model with a jobs multiplier effect of approximately zero, since, in this model, nothing of value is produced.
*It has promulgated the very economic attitudes and practices– short-term is more important than sustainable, wealth can come from ever-growing debt, something can come from nothing, slickness trumps honesty–that led us into the debt bubble and the Great Recession of 2008 and beyond.
*It has caused neighboring states to compete against each other in a race to the bottom.
*It has taken dollars from the poor to fund programs for the better-off.
*It has spread addiction into our population, using the new science of machine design to produce out-of-control behavior that, according to scientists, closely resembles addictive behavior from cocaine.
*It has spread debt and bankruptcy into our population.
*It has led to serious gambling-related problems among young people.
*It has extracted 80 percent or more of its profits from 10 percent of its “players,” with those high-volume “players” among our poorest and most vulnerable citizens.
*It has contributed to broken families and child neglect and other social messes everywhere it goes, and has taken little or no responsibility to clean them up.
*It has turned many law-abiding citizens into criminals who cheat, steal, and embezzle in order to continue to gamble.
*It has arrogantly exempted itself from truth-in-advertising laws so that it can use taxpayer money to create and spread deceptive advertising.
*It has corrupted our sense of community and undermined our faith that we’re all in this together.
*It has deliberately changed the word “gambling” to “gaming” in order to make this often destructive activity sound as innocent as child’s play.
*It has fueled cynicism about the motives of our government.
*It has repudiated the value of thrift by creating mass incentives to turn potential savers into habitual bettors.
*It has repudiated the virtue of “love your neighbor” and replaced it with a government endorsement of predatory practices, or preying on human weakness for gain.
*It has withered our capacity as a people to confront forthrightly our reluctance to pay taxes for the public services we desire.
*It has trampled on the ideal of “confirm thy soul in self-control.”
*It has trampled on the ideal of “justice for all.”
*It has broken faith with the wisdom and leaders of earlier generations who, seeing the failure of gambling in the past, amended state constitutions to ban gambling activities.
*It has lied to us about how the government actually uses the money it gets from gambling.
*It has lied to us by repeating again and again that luck–rather than work–is the key to the American dream.
WE therefore come together as American citizens, from diverse backgrounds, religious faiths, political convictions, and life circumstances, to declare our intention of making these United States free and independent of government-sponsored gambling, and once again able to resume their place as protectors of our security, leaders in building a shared prosperity, and examples to the world.
Please add your name to An American Declaration on Government and Gambling by signing here.By Donald Morris, Ph.D., MS, CPA
Executive Summary
*
Most taxpayers believe gambling proceeds are immune from tax, unless they receive a Form W-2G.
*
Each pull of a lever or push of a button on a slot machine, hand of blackjack or spin of a roulette wheel is an individual wager that may result in gambling winnings.
*
To prove gambling losses and taxable income, taxpayers are subject to rules of proof, recordkeeping, estimating and credibility.
Taxpayer-gamblers are not generally aware of the ease with which the IRS successfully counters attempts to offset gambling winnings with gambling losses. Often, gamblers are not concerned about the exact amount of gambling winnings they report, because they believe they have sufficient gambling losses to offset their winnings. The central issue raised by the Service on audit is not always the right to a deduction for gambling losses—allowed by Sec. 165(d)—but taxpayers’ inability to prove the amount of their gambling losses and, in particular, their basis in the losses claimed. The Problem of Gambling Losses
A common scenario involves a taxpayer, as in Norgaard,1 who reports gambling winnings because a Form W-2G, Certain Gambling Winnings, was issued. The fatal step is that the taxpayer dutifully reports the W-2G winnings, but fails to report any other winnings, however small. The IRS, on examination, questions the gambler about the possibility of any other winnings during the period. When the taxpayer admits to other winnings, the Service asserts that whatever the amount of the taxpayer’s losses, they were already used to offset the unreported winnings and, thus, are not available to offset the W-2G winnings. The Tax Court has accepted this position when the taxpayer failed to report gambling income in excess of W-2G winnings. The taxpayer must establish that claimed gambling losses exceed unreported gambling income, to be entitled to a deduction.2
When the IRS determines that a taxpayer’s income is incorrectly computed, he or she bears the burden of proving that the Service’s position is erroneous.3 In Mack,4 the Service successfully denied gambling losses, arguing that the taxpayer’s losses were already offset by winnings other than those reported on his return. In Lutz,5 the IRS conceded unproven gambling losses of $43,818.75 to the taxpayers, then asserted they were not entitled to a deduction, because those losses were less than the unreported gross gambling winnings omitted from the notice of deficiency. The court responded that, to establish their entitlement to deduct gambling losses from gross gambling income, the taxpayers had to show that their gambling losses exceeded the $50,995 of unreported gross gambling income not reflected in the notice of deficiency. This approach may save the Service from having to reconstruct a taxpayer’s unreported winnings, which can be daunting.6
A taxpayer’s logical response to the IRS should be to produce his or her books and records regarding the year’s gambling activities, as required by Rev. Proc. 77-29.7 This procedure requires taxpayer-gamblers to maintain an accurate diary or similar record, supplemented by verifiable documentation of wagering winnings and losses. The diary must contain the following information:
1. Date and type of specific wager or wagering activity;
2. Name and address or location of gambling establishment;
3. Name(s) of other person(s) (if any) present with the taxpayer at the gambling establishment; and
4. Amounts won or lost.
For slot machines, the Service further requires that a taxpayer record all winnings by date, time and slot machine number (see Exhibit 1). But because few taxpayers (especially recreational gamblers) maintain convincing records of their gambling activities, they can be left paying tax on their gross W-2G winnings, without any offset for gambling losses. Unreported W-2G winnings can also result in the imposition of penalties and interest.
In Kalisch,8 the taxpayer reported $41,979 in gambling income and claimed offsetting gambling losses in the same amount on his 1981 return. In its notice of deficiency, the IRS accepted the taxpayer’s income figure, but disallowed the deduction for gambling losses, because the taxpayer failed to substantiate them and because he had additional unreported winnings that exceeded his losses for the year. The court rejected the additional-income argument and allowed the loss deduction. Fortunately for taxpayers, the courts do not always agree with the Service’s reasoning. A Growing Problem
What is the potential magnitude of this problem? Should practitioners and their clients be concerned? Part of the answer lies in the growing number of people participating in gambling. In 2000, the U.S. General Accounting Office reported that legalized gambling had spread to every state, except Utah and Hawaii.9 Legalized gambling in the U.S. has seen a steady increase since the advent of Indian tribal casinos and the subsequent legalization of casino gambling by states other than Nevada. Gaming revenue for 2002 totaled $68 billion (up from $30 billion in 1992, or 127%), while in 2003, it totaled $73 billion, rising 7.4% from the previous year.10 Of this total, $40 billion stems from casino revenue.11 In addition, for 2004 (the most recent data available), 1.7 million taxpayers reported gambling winnings to the IRS totaling $23.3 billion. This is up from the 1.5 million taxpayers in 2003 who reported winnings of $19 billion.12 An estimated 86% of Americans have participated in gambling in some form, and 63% reported gambling at least once in the past year.13 The number of individuals visiting casinos in 2003 was 53 million—more than one quarter of the U.S. adult population.14 Tax advisers should assume the same percentages apply to their clients, as gambling cuts across demographic and regional boundaries. As one tax observer recently noted, “Gambling is increasingly looked upon as a legitimate entertainment option akin to sporting events, the theater, and amusement parks.”15 What are the practical consequences of the spread of gambling?
As with other areas requiring recordkeeping (such as automobile mileage and entertainment), clients must be informed of the legal requirements for reporting gambling winnings, even if they erroneously believe they have no reportable winnings or they have sufficient gambling losses to offset them. It is crucial to determine gross gambling winnings and to separately establish the amount and basis for deducting gambling losses. As noted, the IRS wields a powerful argument in its arsenal; taxpayers and their advisers need to be educated.Educating Clients
Education covers two fronts. First, which types or amounts of gambling winnings must be reported? The requirement to report gambling winnings (legal or illegal) at gross, even if the year’s net result is a loss, is not frequently recognized by taxpayers, including recreational gamblers. Gross gambling income is reported on page one of Form 1040, while gambling losses are a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income (AGI) limit).
Taxpayers often believe their winnings are immune from reporting unless they receive a Form W-2G. In Hamilton,16 taxpayers failed to include $134,041 in lottery winnings in income on the grounds that they were neither professional nor part-time gamblers. The court disagreed, asserting that “an accession to wealth on account of gambling winnings is includable in an individual taxpayer’s gross income whether he or she is a professional gambler, a part-time gambler, or simply a onetime gambler.”
Taxpayers must also segregate winnings from losses to allow proper reporting. In Clemons,17 the taxpayer argued that his $44,833 in gambling winnings need not be included in gross income, because he had sufficient gambling losses to offset them. According to the court, the taxpayer “steadfastly rejects or ignores certain basic principles of the Federal income tax laws.” The taxpayer insisted on netting his winnings and losses and reporting only net winnings on his return.18
Once the need to report gambling, like any other form of income, is established and the corresponding requirement to segregate (as opposed to netting) winnings and losses is acknowledged, the next step is establishing a basis for gambling losses.Tax Adviser’s Responsibility
Tax advisers need to recognize the pitfalls involved in determining the amount of gambling losses available to offset winnings. As most taxpayers do not keep sophisticated books and records of their gambling activity, the tax preparer is in a potentially perilous position when advising a client on documentation requirements for establishing gambling losses. If the taxpayer is reporting Form W-2G winnings (and no other gambling income), a preparer should not take a taxpa
https://diarynote.indered.space
*Gain Casino Declaration Of Conformity
*Declaration Gain Casino En Ligne
*Gain Casino Declaration Of Independence
*Gain Casino Declaration Of Domicile
*Gain Casino Declaration Of 1763
*100% Bonus: 20x wagering on combined deposit and Gain Casino Declaration bonus total (% game weightings and play restrictions apply). Max bonus bet £5 (£10 live casino) 15 days to accept, 40 to complete. £5 bonus: After deposit bonus wagered, selected games only. 1x wagering, 7 days to Gain Casino Declaration accept, 7 to complete, max withdrawal from winnings £100.
*After reading An American Declaration on Government and Gambling below, please add your name by signing here. After four decades of unfulfilled promises, it is time for our government to end its partnership with organized gambling interests and to embrace a fundamentally different and higher vision of the path to American prosperity.
After reading An American Declaration on Government and Gambling below, please add your name by signing here.
After four decades of unfulfilled promises, it is time for our government to end its partnership with organized gambling interests and to embrace a fundamentally different and higher vision of the path to American prosperity.Gain Casino Declaration Of Conformity
The health and safety of our customers, our employees and all Ontarians remains a priority for OLG. Consistent with provincial orders which place the City of Toronto on lockdown effective November 23, 2020, the OLG Prize Centre at Yonge and Dundas Street in Toronto is temporarily reducing the number of in-person appointments per day as of 3 p.m. Saturday, November 21, 2020. Visitors to your facilities come in many shapes and sizes. They may be business guests, employee family members or potential new hires arriving for an interview. 5:12-1 Short title; declaration of policy and legislative findings a. This act shall be known and may be cited as the ’Casino Control Act.’ The Legislature hereby finds and declares to be the public policy of this State, the following: (1) The tourist, resort and convention industry of this State.
In short, after four decades of consistent failure, it is time for our government to get out of gambling and for gambling to get out of our government. We come together now to work for this change.
We will not be satisfied with small concessions, nor with measures that merely slow down the pace of government’s gambling expansion.
We hereby dedicate ourselves to a fundamental national reform –an America where no taxpayer dollar is used by government to lure citizens into gambling away their money and becoming slaves to debt; where no agency or entity of government depends on gambling to fund its activities; and where no legislature, whether in the name of economic development or raising revenue, passes laws to promote, sponsor, or enable gambling.
We realize that many of our current political leaders will oppose this reform. They will say that they can no longer resist the power of the gambling forces, that the spread of gambling is inevitable, and that the debate is over.
We also realize that some of our fellow citizens, worn down by the relentless encroachments of the government-gambling partnership, will say that our cause is hopeless.
It is anything but hopeless. We are a free people who can reform our government and change our ways.
This is a critical moment. How our generation responds to the reach and arrogance of the government-gambling power structure will largely determine the quality of our social life in the coming decades.
Politically, economically, ethically, and spiritually, the stakes are extraordinarily high.
POLITICALLY: Government’s partnership with gambling fundamentally changes the compact between government and the governed. It pits government’s interests against the best interests of its people. For government to win, its citizens must lose.
ECONOMICALLY: No great nation has ever built prosperity on the foundations of personal debt, addiction, and the steady expansion of “businesses” that produce no new wealth. Relying on gambling as an economic development strategy is a sign of surrender and defeat on the part of leaders who have failed to lead.
ETHICALLY: A decent government does not finance its activities by playing its most vulnerable citizens for suckers, thus rendering the lives of millions expendable, exploitable, and unworthy of protection.
SPIRITUALLY: We mock the higher values that any good society depends on–honesty, mutual trust, self-discipline, sacrifice, concern for others, and a belief in a work ethic that connects effort and reward –when government tells its citizens every day that it is committed to providing “fun” instead of opportunity; that a rigged bet is the way to achieve the American dream; and that spending one’s hard-earned dollars on scratch tickets is a form of good citizenship.
This is America. Surely we can do better than this. Surely we must. The choice is not – it has never been – between tying our future to gambling and accepting economic decline. Government-sponsored gambling is itself a form of economic decline. The alternative is to muster the courage to chart a path to true prosperity. An America freed from the yoke of government-sponsored gambling would be an America once again on the move–an America with broader and more sustainable economic growth, more honesty in government, more social trust, and the rekindling of the optimism that has long been our defining national strength.
Therefore, with this Declaration, we set forth our reasons for seeking this reform and appeal to a candid nation to judge the truth of our argument.
Over the past four decades, how has government’s partnership with gambling failed?
*It has transformed gambling from a private and local activity into the public voice of American government, such that ever increasing appeals to gamble, and ever-expanding opportunities to gamble, now constitute the main ways that our government communicates with us on a daily basis.
*It has broken its promise to remain a small component of our government and a small part of our society. In the brave new world envisioned by this power structure–where every cell phone is a “casino in your pocket” and every bar, gas station, convenience store, computer, and home in the nation is a place to place a bet–the essential driving message from the American government to the American people is “All gambling, all good, all the time.”
*It has fueled irresponsibility and non-accountability in government by imposing a giant excise tax on the citizenry that politicians never have to call a “tax.”
*It has failed to deliver on its over-hyped promises to fund education, lower taxes, or pay for needed public services.
*It has taken political power away from the people and handed it over to gambling lobbyists.
*It has perpetrated a phony model of economic development–a model with a jobs multiplier effect of approximately zero, since, in this model, nothing of value is produced.
*It has promulgated the very economic attitudes and practices– short-term is more important than sustainable, wealth can come from ever-growing debt, something can come from nothing, slickness trumps honesty–that led us into the debt bubble and the Great Recession of 2008 and beyond.
*It has caused neighboring states to compete against each other in a race to the bottom.
*It has taken dollars from the poor to fund programs for the better-off.
*It has spread addiction into our population, using the new science of machine design to produce out-of-control behavior that, according to scientists, closely resembles addictive behavior from cocaine.
*It has spread debt and bankruptcy into our population.
*It has led to serious gambling-related problems among young people.
*It has extracted 80 percent or more of its profits from 10 percent of its “players,” with those high-volume “players” among our poorest and most vulnerable citizens.
*It has contributed to broken families and child neglect and other social messes everywhere it goes, and has taken little or no responsibility to clean them up.
*It has turned many law-abiding citizens into criminals who cheat, steal, and embezzle in order to continue to gamble.
*It has arrogantly exempted itself from truth-in-advertising laws so that it can use taxpayer money to create and spread deceptive advertising.
*It has corrupted our sense of community and undermined our faith that we’re all in this together.
*It has deliberately changed the word “gambling” to “gaming” in order to make this often destructive activity sound as innocent as child’s play.
*It has fueled cynicism about the motives of our government.
*It has repudiated the value of thrift by creating mass incentives to turn potential savers into habitual bettors.
*It has repudiated the virtue of “love your neighbor” and replaced it with a government endorsement of predatory practices, or preying on human weakness for gain.
*It has withered our capacity as a people to confront forthrightly our reluctance to pay taxes for the public services we desire.
*It has trampled on the ideal of “confirm thy soul in self-control.”
*It has trampled on the ideal of “justice for all.”
*It has broken faith with the wisdom and leaders of earlier generations who, seeing the failure of gambling in the past, amended state constitutions to ban gambling activities.
*It has lied to us about how the government actually uses the money it gets from gambling.
*It has lied to us by repeating again and again that luck–rather than work–is the key to the American dream.
WE therefore come together as American citizens, from diverse backgrounds, religious faiths, political convictions, and life circumstances, to declare our intention of making these United States free and independent of government-sponsored gambling, and once again able to resume their place as protectors of our security, leaders in building a shared prosperity, and examples to the world.
Please add your name to An American Declaration on Government and Gambling by signing here.By Donald Morris, Ph.D., MS, CPA
Executive Summary
*
Most taxpayers believe gambling proceeds are immune from tax, unless they receive a Form W-2G.
*
Each pull of a lever or push of a button on a slot machine, hand of blackjack or spin of a roulette wheel is an individual wager that may result in gambling winnings.
*
To prove gambling losses and taxable income, taxpayers are subject to rules of proof, recordkeeping, estimating and credibility.
Taxpayer-gamblers are not generally aware of the ease with which the IRS successfully counters attempts to offset gambling winnings with gambling losses. Often, gamblers are not concerned about the exact amount of gambling winnings they report, because they believe they have sufficient gambling losses to offset their winnings. The central issue raised by the Service on audit is not always the right to a deduction for gambling losses—allowed by Sec. 165(d)—but taxpayers’ inability to prove the amount of their gambling losses and, in particular, their basis in the losses claimed. The Problem of Gambling Losses
A common scenario involves a taxpayer, as in Norgaard,1 who reports gambling winnings because a Form W-2G, Certain Gambling Winnings, was issued. The fatal step is that the taxpayer dutifully reports the W-2G winnings, but fails to report any other winnings, however small. The IRS, on examination, questions the gambler about the possibility of any other winnings during the period. When the taxpayer admits to other winnings, the Service asserts that whatever the amount of the taxpayer’s losses, they were already used to offset the unreported winnings and, thus, are not available to offset the W-2G winnings. The Tax Court has accepted this position when the taxpayer failed to report gambling income in excess of W-2G winnings. The taxpayer must establish that claimed gambling losses exceed unreported gambling income, to be entitled to a deduction.2
When the IRS determines that a taxpayer’s income is incorrectly computed, he or she bears the burden of proving that the Service’s position is erroneous.3 In Mack,4 the Service successfully denied gambling losses, arguing that the taxpayer’s losses were already offset by winnings other than those reported on his return. In Lutz,5 the IRS conceded unproven gambling losses of $43,818.75 to the taxpayers, then asserted they were not entitled to a deduction, because those losses were less than the unreported gross gambling winnings omitted from the notice of deficiency. The court responded that, to establish their entitlement to deduct gambling losses from gross gambling income, the taxpayers had to show that their gambling losses exceeded the $50,995 of unreported gross gambling income not reflected in the notice of deficiency. This approach may save the Service from having to reconstruct a taxpayer’s unreported winnings, which can be daunting.6
A taxpayer’s logical response to the IRS should be to produce his or her books and records regarding the year’s gambling activities, as required by Rev. Proc. 77-29.7 This procedure requires taxpayer-gamblers to maintain an accurate diary or similar record, supplemented by verifiable documentation of wagering winnings and losses. The diary must contain the following information:
1. Date and type of specific wager or wagering activity;
2. Name and address or location of gambling establishment;
3. Name(s) of other person(s) (if any) present with the taxpayer at the gambling establishment; and
4. Amounts won or lost.
For slot machines, the Service further requires that a taxpayer record all winnings by date, time and slot machine number (see Exhibit 1). But because few taxpayers (especially recreational gamblers) maintain convincing records of their gambling activities, they can be left paying tax on their gross W-2G winnings, without any offset for gambling losses. Unreported W-2G winnings can also result in the imposition of penalties and interest.
In Kalisch,8 the taxpayer reported $41,979 in gambling income and claimed offsetting gambling losses in the same amount on his 1981 return. In its notice of deficiency, the IRS accepted the taxpayer’s income figure, but disallowed the deduction for gambling losses, because the taxpayer failed to substantiate them and because he had additional unreported winnings that exceeded his losses for the year. The court rejected the additional-income argument and allowed the loss deduction. Fortunately for taxpayers, the courts do not always agree with the Service’s reasoning. A Growing Problem
What is the potential magnitude of this problem? Should practitioners and their clients be concerned? Part of the answer lies in the growing number of people participating in gambling. In 2000, the U.S. General Accounting Office reported that legalized gambling had spread to every state, except Utah and Hawaii.9 Legalized gambling in the U.S. has seen a steady increase since the advent of Indian tribal casinos and the subsequent legalization of casino gambling by states other than Nevada. Gaming revenue for 2002 totaled $68 billion (up from $30 billion in 1992, or 127%), while in 2003, it totaled $73 billion, rising 7.4% from the previous year.10 Of this total, $40 billion stems from casino revenue.11 In addition, for 2004 (the most recent data available), 1.7 million taxpayers reported gambling winnings to the IRS totaling $23.3 billion. This is up from the 1.5 million taxpayers in 2003 who reported winnings of $19 billion.12 An estimated 86% of Americans have participated in gambling in some form, and 63% reported gambling at least once in the past year.13 The number of individuals visiting casinos in 2003 was 53 million—more than one quarter of the U.S. adult population.14 Tax advisers should assume the same percentages apply to their clients, as gambling cuts across demographic and regional boundaries. As one tax observer recently noted, “Gambling is increasingly looked upon as a legitimate entertainment option akin to sporting events, the theater, and amusement parks.”15 What are the practical consequences of the spread of gambling?
As with other areas requiring recordkeeping (such as automobile mileage and entertainment), clients must be informed of the legal requirements for reporting gambling winnings, even if they erroneously believe they have no reportable winnings or they have sufficient gambling losses to offset them. It is crucial to determine gross gambling winnings and to separately establish the amount and basis for deducting gambling losses. As noted, the IRS wields a powerful argument in its arsenal; taxpayers and their advisers need to be educated.Educating Clients
Education covers two fronts. First, which types or amounts of gambling winnings must be reported? The requirement to report gambling winnings (legal or illegal) at gross, even if the year’s net result is a loss, is not frequently recognized by taxpayers, including recreational gamblers. Gross gambling income is reported on page one of Form 1040, while gambling losses are a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income (AGI) limit).
Taxpayers often believe their winnings are immune from reporting unless they receive a Form W-2G. In Hamilton,16 taxpayers failed to include $134,041 in lottery winnings in income on the grounds that they were neither professional nor part-time gamblers. The court disagreed, asserting that “an accession to wealth on account of gambling winnings is includable in an individual taxpayer’s gross income whether he or she is a professional gambler, a part-time gambler, or simply a onetime gambler.”
Taxpayers must also segregate winnings from losses to allow proper reporting. In Clemons,17 the taxpayer argued that his $44,833 in gambling winnings need not be included in gross income, because he had sufficient gambling losses to offset them. According to the court, the taxpayer “steadfastly rejects or ignores certain basic principles of the Federal income tax laws.” The taxpayer insisted on netting his winnings and losses and reporting only net winnings on his return.18
Once the need to report gambling, like any other form of income, is established and the corresponding requirement to segregate (as opposed to netting) winnings and losses is acknowledged, the next step is establishing a basis for gambling losses.Tax Adviser’s Responsibility
Tax advisers need to recognize the pitfalls involved in determining the amount of gambling losses available to offset winnings. As most taxpayers do not keep sophisticated books and records of their gambling activity, the tax preparer is in a potentially perilous position when advising a client on documentation requirements for establishing gambling losses. If the taxpayer is reporting Form W-2G winnings (and no other gambling income), a preparer should not take a taxpa
https://diarynote.indered.space
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