AICPA wants guidance on reporting gambling gains and losses
The AICPA asks the IRS and Treasury for guidance on substantiating and reporting gambling gains and losses.Summary
The American Institute of CPAs has urged the Treasury Department and the IRS to provide guidance on how taxpayers should measure, substantiate, and report gambling gains and losses. In a comment letter, the AICPA noted that proposed regulations issued in April on Section 165(d) and Form W-2G do not address these issues. The AICPA recommended defining a gambling session with a safe harbor, identifying adequate records such as account histories and win-loss statements, and applying the session method to various types of wagering. Scott Klein, senior manager of AICPA tax policy and advocacy, said clear rules are more important than ever due to the growth of online wagering and the new 90% limitation on wagering losses, warning that without them taxpayers face higher taxable income, reporting discrepancies, and uncertainty.
(Source：Accounting Today)