I just receieved a notice from the IRS about self-employment tax

[Hans Gruber]

I already filed my taxes for 2006 last month, and I just got a letter in the mail today stating that "you reported income that appears to be subject to self-employment tax."

Through my research (mostly on 2+2) it appears that this is not true. I work full-time for a software company, and I made about 60K from my job in 2006. I played low stakes online poker last year, logging every session into pokertracker, making another $5,500.

I filed my 1040 form and included all winning sessions as other income (line 21), and I deducted my losing sessions on Schedule A.

Has anyone ever heard of the IRS requiring self-employment tax in this case? I play poker strictly as a hobby, and from everything that I found, self-employment tax only applies to those who play poker professionally, and not as a hobby like I do.

I will be calling the IRS tomorrow but I wanted to post here first to see if anyone can shed any light on my situation.