In 1977, the Internal Revenue Service (IRS) released Revenue Procedure 77-29.
These instructions, provide a detailed list of what the IRS requests when a Gambler/Taxpayer gets audited.
First of all, the IRS wants some type of record or log that specifically shows the date and time of when the money was spent and received – think “Gambling Session.”
Second, the IRS wants the Gambler/Taxpayer to prove when and where he was. That is why the IRS requires the name and location of the gambling establishment as well as the names of other persons present. Such proof comes in the form of hotel bills, airline tickets and gasoline credit cards. These additional requirements are not surprising since the majority of gambling transactions involve cash and receipts are generally not available to verify such amounts.
Third, these records need to be regularly maintained.
Basically, the IRS wants the Gambler/Taxpayer to keep a “gambling” diary.
The Lady Luck Gambling Diary meets the requirements set forth by IRS Revenue Procedure 77-29.
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