Gambling Reporting Regs Aren't for Individual Taxpayer Use

UIL: 165.08-00
Release Date: 6/30/2017

Date: April 25, 2017

Refer Reply To: CONEX-111545-17

Attention: * * *

The Honorable Justin Amash
Member, U.S. House of Representatives
110 Michigan Street NW, Suite 460
Grand Rapids, MI 49503

Dear Representative Amash:

I am responding to your inquiry, dated April 5, 2017, on behalf of your constituent, * * *. She asked for information about IRS Regulation 132253-11 on gaming rules. Specifically, she asked if she could apply the rules to calculate her wagering gains and losses for her * * * tax return and to amend her * * * tax return.

As you requested, I responded directly to * * *. For your records, I am enclosing a copy of my response.

I hope this information is helpful. If you have additional questions, please call me at * * * or * * * at * * *.

Sincerely,

Scott K. Dinwiddie
Associate Chief Counsel
(Income Tax and Accounting)

Enclosure
* * * 

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UIL: 165.08-00

Date: April 25, 2017

Refer Reply To: CONEX-111545-17

Dear * * *:

I am responding to your inquiry dated April 3, 2017, to Representative Justin Amash. Representative Amash wrote to us on your behalf and asked us to respond directly to you. You asked about IRS Regulation 132253-11 on gaming rules.

The slot machine information reporting regulations you refer to are for payors, like casinos, to use when meeting their reporting requirements under section 6041 of the Internal Revenue Code. These regulations were not intended for individual taxpayers to use in computing their wagering gains and losses for the purpose of calculating their individual income tax.

Wagering gains are included in gross income. A wagering gain is the amount won in excess of the amount bet. Losses from wagering transactions are deductible, but only to the extent of gains from these transactions. A wagering loss means the amount of the bet that is lost. A casual gambler recognizes a wagering gain or loss at the end of a wagering session. Determining a session depends on your particular facts and circumstances.

I hope this information is helpful. If you have additional questions, please contact * * * or * * * at * * *.

Sincerely,

Scott K. Dinwiddie
Associate Chief Counsel
(Income Tax and Accounting)

cc:
The Honorable Justin Amash
Attention: * * *