When are Casino Win/Loss Statements Sent?

When are Casino Win/Loss Statements Sent?

Many gamblers and tax professionals want to know when casinos send out their win/loss statements.  The short answer is “it depends.” First of all, it is important to realize that the Internal Revenue Service (IRS) has no authority to regulate the format, production or timing of casino win/loss statements. Second, casino win/loss statements are provided […]

What is a Casino Win/Loss Statement?

What is a Casino Win/Loss Statement?

A casino win/loss statement is a report or letter from a casino that summarizes a person’s gambling activity. Typically, such reports total the gambler’s activity by year, activity, and location.  (Sample casino win/loss statements are available for inspection on this page.) Frequently, the IRS refuses to accept a casino’s win/loss statement as evidence of a […]

Why the IRS HATES Casino Win/Loss Statements

Why the IRS HATES Casino Win/Loss Statements

The IRS hates casino win/loss statements for two main reasons – one legal and the other practical. First of all, the IRS has the proper legal authority to disallow the usage of most casino win/loss statements.  The Courts and the IRS have interpreted Section 165(d) of the Internal Revenue Code in such a way that […]

Why the US Tax Court HATES Casino Win/Loss Statements

Why the US Tax Court HATES Casino Win/Loss Statements

Over the years, the US Tax Court has reviewed many cases when casino win/loss statements (or their equivalent) were offered into evidence by the taxpayer.  None of the Tax Court judges found the documents helpful or persuasive.  Lets examine each of these cases in turn. Mayer v. Commissioner of Internal Revenue On September 20, 2000, […]

Why Gamblers LOVE/HATE Casino Win/Loss Statements

Why Gamblers LOVE/HATE Casino Win/Loss Statements

Gamblers love to use casino win/loss statements because it is easy.  Just report the amounts from the casino win/loss statements.  No muss, no fuss.  No record keeping hassles.  You’re done. Unfortunately, it doesn’t work that way. For starters, the Internal Revenue Code requires taxpayers to keep and maintain adequate records sufficient to prove their income […]

Why Everybody HATES the “Disclaimer” Language Used in Casino Win/Loss Statements

Why Everybody HATES the "Disclaimer" Language Used in Casino Win/Loss Statements

Without exception, every casino win/loss statement has some type of disclaimer language.  The casinos essentially discourage the gambler, the IRS, and anyone else for that matter from using these amounts for any accounting or tax purposes. What the casinos are saying, without really admitting, is that the information summarized in a casino win/loss statement is […]

Why the IRS LOVES for Gamblers to Use a Gambling Diary to Track their Wins and Losses

Why the IRS LOVES for Gamblers to Use a Gambling Diary to Track their Wins and Losses

The reason why the IRS loves gamblers to use a gambling diary is obvious.  A gambling diary organizes the gambling transactions and documents in such way that makes it easier to verify – plain and simple. Between 1934 and 1977, it was anybody’s guess as to the record keeping requirements for wagering losses. Then in […]

What is a “Gambling Session”?

What is a "Gambling Session"?

Section 165(d) of the Internal Revenue Code provides that losses from wagering transactions are allowed only to the extent of the gains from such transactions. Focusing on the term “transaction”, the Courts and the IRS refuse to let gamblers report their gambling activity in total. On the other hand, the Courts and the IRS also […]

For More Information About Casino Win/Loss Statements …

For More Information About Casino Win/Loss Statements ...

For more information, please visit the Lady Luck Gambling Diary website.  This website also contains a helpful amount of tax research, including: Articles – on selected gambling tax topics to help the gambler and tax professional better understand the issues unique to gamblers. IRS Information – including forms, publications and relevant sections of the Internal […]