Each pathway follows one kind of gambling tax matter the way a tax professional would work it up: the questions to answer, in order, with the leading cases on each point. The cases come from the library itself, so a pathway grows as opinions are added.
Use a pathway to get oriented, then open the Research Guide topic for every authority and the treatise chapter for the full discussion. Taxpayers looking for help should start with the Treatise on Gambling Tax. Always read the opinion before relying on a point.
Returns and reporting
Measuring wagering gains and losses correctly, and the special cases that change the return.
- Preparing a Return with W-2Gs 8 stepsMeasuring wagering gains by session, reporting the W-2G total, and disclosing the adjustment.
- Large Jackpots and Lottery Prizes 5 stepsTiming, annuities, withholding and comps when a single win is large.
- Older Gamblers and Adjusted Gross Income 5 stepsWhy gross W-2G income costs retirees more than the tax, and how to correct it.
- State Tax on Gambling Winnings 3 stepsFederal AGI as the starting point, state limits on losses, and nonresident returns.
Notices, examinations and penalties
From the first matching notice through the examination, penalties and the Tax Court.
- Responding to a CP2000 for W-2G Income 5 stepsThe matching notice, why it ignores losses, and how to answer it with a session analysis.
- Defending a Gambling Examination 6 stepsWhat examiners ask for, the source-of-funds question, and how to prove sessions.
- Penalties in a Gambling Case 3 stepsThe accuracy-related penalty, reasonable cause, disclosure, and civil fraud.
Special taxpayers
Professional gamblers, spouses, nonresident aliens, estates and gambling businesses.
- Evaluating a Professional Gambler Claim 5 stepsThe Groetzinger test, what professional status changes, and where wager basis belongs.
- Spouses and Gambling Liabilities 3 stepsJoint and separate returns, joint liability, and innocent spouse relief.
- Nonresident Alien Gambling Winnings 3 stepsThe 30 percent tax, exempt table games, treaties, and Park.
- A Decedent’s Gambling Winnings 3 stepsThe final return, lottery annuities, and the personal representative's exposure.
- Bookmakers and Gambling Businesses 4 stepsIncome from accepting wagers, illegal gambling income, and the wagering excise and occupational taxes.