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Level 3
posted Aug 24, 2021 12:30:16 PM

Gambling Income Question

below rounded for simplicity of discussion


I reported $10k of GROSS gambling income on my tax return. The IRS would have only received $3k worth of information ( I know I’m an honest person).

 

will I be flagged by the AUR program because it doesn’t exactly match the reported w2gs or because it’s more than what they know it doesn’t matter.

 

can someone who’s done this before confirm?

 

 

0 6 772
6 Replies
Level 15
Aug 24, 2021 12:37:17 PM

Always report the actual amount even if it is more ... it just cannot be less than what was reported. 

Level 3
Aug 24, 2021 12:43:25 PM

Thanks- so I won’t be flagged for reporting amounts they don’t know about? Sorry I’m new to most things and just trying to do the right thing but not have to deal with the IRS!

Level 15
Aug 24, 2021 12:51:42 PM

The IRS never objects to someone reporting income that the IRS didn't know about.


AUR stands for Automated Underreporter. It's not looking for an exact match. It's looking for people who underreport their income, i.e. report less than the IRS knows about. There is no Automated Overreporter system.

 

Level 3
Aug 26, 2021 4:11:36 AM

So reporting the correct higher Gross number I haven’t opened myself up to hearing about a mismatch?

Level 3
Aug 26, 2021 4:12:02 AM

So reporting the correct higher gross number I haven’t opened myself up to hearing about a mismatch?

Level 15
Aug 26, 2021 4:36:39 AM

Again NO ... you are fine ... you did NOT underreport  you actually overreported which the IRS loves.