Paying Taxes on Gambling Winnings in Washington State

[StellarWind]

There is a difference between being audited and being specifically forced to provide session-by-session results. Most audits are done by mail and most audits are limited to specific subjects that interest the I.R.S. The likely purpose of an audit will be to challenge your professional status or attack deductions the government doesn't like.

Even if they do want to discuss session-by-session results, my records are organized by online site, not geographic location. Why would an I.R.S. agent even ask about what state you were in for a specific session?

If he actually does ask then my reaction would be to politely suggest that the information is not relevant to my Federal tax liability because it isn't. You don't have to incriminate yourself.

You do need to think about deductions for home office and internet service. Those could create a problem. Maybe you should invest a few dollars by not claiming things you don't want to discuss or document.