#1
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Forget to claim gambling wins/losses with 0 profit.
I think a couple years ago I might have forgotten to claim my gross gambling winnings and gross gambling losses on my tax return. My net profit for the year was 0 dollars and 0 cents. And I don't live in one of those mentally retarded states that prohibits you from claiming gambling losses.
Anyone here have any idea what the IRS does to ignorant law deviants such as myself who may be guilty of a clerical error? Given that I didn't actually cheat the government out of any money (since I made none), is ankle grabbing in an under-funded state pen a forseable possibility in my future? Thanks, dB |
#2
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Re: Forget to claim gambling wins/losses with 0 profit.
assuming you're not a minority, the very worst is a couple month vacation to club fed.
-eric |
#3
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Re: Forget to claim gambling wins/losses with 0 profit.
I think all the penalties are monetary, except for tax evasion, and it would be a tough sell that you intended to evade paying zero dollars.
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#4
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Re: Forget to claim gambling wins/losses with 0 profit.
[ QUOTE ]
I think a couple years ago I might have forgotten to claim my gross gambling winnings and gross gambling losses on my tax return. My net profit for the year was 0 dollars and 0 cents. And I don't live in one of those mentally retarded states that prohibits you from claiming gambling losses. Anyone here have any idea what the IRS does to ignorant law deviants such as myself who may be guilty of a clerical error? Given that I didn't actually cheat the government out of any money (since I made none), is ankle grabbing in an under-funded state pen a forseable possibility in my future? Thanks, dB [/ QUOTE ] Sorry but I doubt the IRS really cares. |
#5
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Re: Forget to claim gambling wins/losses with 0 profit.
Remember, just because your net is zero does not mean that your tax liability on the gambling money is the same. Some cases it is zero, others it is not. This can be particularly true for those who would not otherwise itemize amd take the standard deduction.
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#6
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Re: Forget to claim gambling wins/losses with 0 profit.
Berge has the idea right that you might owe tax with a net zero gambling income. Any penalty assessed would be based upon the additional tax that you failed to pay. I would also add that the extra income from your winning sessions could cause various credits and deductions to phase out.
Prison is not a common result for people who mess up on their taxes. Jail time is generally saved for those who cheat and create schemes that make it obvious that they never had any intention of paying the tax due. An honest mistake isn't going to end up in jail time, especially if you are reasonable with the IRS when they ask questions. |
#7
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Re: Forget to claim gambling wins/losses with 0 profit.
Sure, it is possible that you will face monetary penalties, but the reality is that you're very unlikely to get caught in this case. Even in an audit the IRS is not likely to notice gambling income unless you're making deposits into your bank accounts or purchasing big-ticket items with cash and generating CTRs. If you're netting zero, neither is likely.
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