We are getting conflicting advice here. Others have indicated that you need to insert the 1099K because the IRS will receive this and be looking for it - the correction would then be to cancel out the value in the 1099K by reporting another negative entry and then additionally reporting gambling winnings. This seems to make sense if in fact the IRS will be seeing the 1099K information and be expecting it. We are now hearing that we can simply ignore the 1099K if we cover these values in the gambling winning section - the concern with this response is that the IRS will have no clue that 1099K values are in fact the same as gambling winnings.
Can you provide insight into if the IRS actually receives the 1099K? The need to include it in our return seems wholly dependent on if the IRS will be aware of it and looking for it.
