Schedule C Professional Gambler Business Income

hseing · ‎October 7, 2019

What will it happen when the IRS discover that the W2G was not reported since it’s reported under Business Income? How does the IRS know that the amount in the Business Income belong to i.e. is the W2G amount? Anything is linked between the expenses amount and W2G so that the IRS won’t question about not reporting the W2G amount? Thanks for your help.

DoninGA · ‎October 7, 2019

Already answered here - https://ttlc.intuit.com/community/taxes/discussion/re-schedule-c-for-gambling-income-where-to-show-l...

Anonymous · ‎October 7, 2019

enter the W2-G amount. then on the other income worksheet enter a negative amount to offset and describe it as gambling winnings reported on schedule C. thus the iRS should be able to mach up the form and you have given them a roadmap as to where the amount ended up

if the IRS sends a notice. then you can call the number on it to explain and ask if anything further is needed. if this is your first year filing as a pro gambler, you stand a higher risk of being audited. the IRS would want to see that your activities rise to the level of professional gambler.

if this is relevant, i providing a link that provides some guidance as to what the IRS looks at.

https://www.journalofaccountancy.com/issues/2016/oct/taxes-for-gamblers.html