I've talked to the IRS- while the rep I spoke to was a little shaky, she basically said that a tournament is a session. A satellite tourney is a separate session from the event you're winning your way into.
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Under that IRS definition, if an online player stays seated at the same table, then they are still in the same session, correct?
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That's how I've read it/interpreted it, from IRS listings and from other CPA's writing on in (including the author of the article I linked to- that author and others have written about this for years.
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BTW, do you have a link to your article on the definition of a session?
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A quick search on the IRS website just now. While you can't find a cut and dried definition (I'm sure they left it vague to avoid creating loopholes), you can extrapolate what a session should be (time/date, length of play, location of session) from putting 2+2 together.... in MY UNPROFESSIONAL NON-LICENSED OPINION.
Gambling Income and Expenses
http://www.irs.gov/taxtopics/tc419.html
"All gambling winnings must be reported irrespective as to whether any portion thereof is subject to withholding. in addition, you may be required to pay an estimated tax on your gambling winnings. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax."
http://www.irs.gov/publications/p529/ar02.html#d0e2065
"You cannot reduce your gambling winnings by your gambling losses and report the difference. You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Therefore, your records should show your winnings separately from your losses. "
"Your diary should contain at least the following information.
The date and type of your specific wager or wagering activity.
The name and address or location of the gambling establishment.
The names of other persons present with you at the gambling establishment.
The amount(s) you won or lost.
Proof of winnings and losses. In addition to your diary, you should also have other documentation. You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment.
For specific wagering transactions, you can use the following items to support your winnings and losses.
These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. They are not all-inclusive. Your tax liability depends on your particular facts and circumstances.
Keno. Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records.
Slot machines.
A record of the machine number and all winnings by date and time the machine was played.
Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc.).
The number of the table at which you were playing. Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage.
Bingo.
A record of the number of games played , cost of tickets purchased, and amounts collected on winning tickets. Supplemental records include any receipts from the casino, parlor, etc.
Racing (horse, harness, dog, etc.).
A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Supplemental records include unredeemed tickets and payment records from the racetrack.
Lotteries. A record of ticket purchases, dates, winnings, and losses. Supplemental records include unredeemed tickets, payment slips, and winnings statements. "
And, the bonus for you illegal income online gambling fans:
http://www.irs.gov/publications/p525/ar02.html#d0e7770
"Bribes. If you receive a bribe, include it in your income. "
http://www.irs.gov/compliance/enforcement/article/0,,id=129064,00.html
"On June, 13, 2005, in Houston, TX, Robert Angleton was sentenced to 87 months in prison and ordered to pay a $125,000 fine for evading more than $1 million in federal excise taxes on gambling wagers of over $64 million related to his bookmaking business."
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Our tax CPA pushed back hard when I told him that we needed to report gross wins and losses, and also when I told him that I had >$5,000 in net winnings and no W-2G.
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Fire him if he won't do it correctly, as you're requesting.
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In fact, most casino's do not even allow you to take written notes of your results at the Blackjack table.
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I've never been stopped- what regulation are you claiming to refer to, regarding this?