I got audited about 9 years ago. But it was basically because I was gambling on greyhounds back then and had quite a few big trifectas and superfecta payouts as well as 2 pick 6 payouts, although one pick 6 only paid $1200.
The MAIN reason why I got audited was because of my deductions. But because I had a friedn who ran into trouble the year before that, I was ready.
I wont explain my story here too much but will explain his story below. But first, I was OK except for excessive deductions so I only had to pay $900, not bad, and in all honesty, it could have been more, but who saves all of the small winners from the track.
Anyway, here is an interesting story for you professional gamblers who plan on deductions. Well, first of all this guy was a big trifecta better in dogs and horses. He usually bet $36 wheels, or when you have 4 horses for first, 5 for second and 5 for third. He took alot of dogs so when they came in he did real well. He also did this for superfectacas as well, but his usual bet on those was about $54 or $72 I think.
Anyway, well he had quite a few trifecta payouts of over $600 throughout the year, maybe about 75 of them or so. He loved that satelitte betting!!!! Anyway, he routinely saved his losing tickets for possible deductions, but this year, he didnt have enough losing tickets so LATE in DECEMBER of that year, he hit the track to bet and "pick up" some tickets. I should also say that he did hit the pick 6 that year at the dog track for I believe $32,000 or so. SO obviously, he needed quite a few losing tickets to make up for his winnings.
Well he decided to just take tickets that were discarded from betters at the track during the month of December all the while also betting himself. Well in the end, he had enough losers to offset the winners or at least it was close!
Now comes the problem. When you file, you dont send in those losing tickets. Those are to be saved for 3 years in case of audit. SO he got audited hte next year and arrived at the audit with everything. Now the auditor was not a gambling expert so he took all necc documention to another agent. After spending only about 30 minutes looking at the tickets, so they busted my buddy. How did it happen?????
Well since he was betting all year long as well as the previous year, he had set a pattern of his normal bets. So he usually bet trifectas, superfectas and pick 6 and pick 3 bets. Each ticket usually cost about $36-72 so those tickets were fairly easy to count and were believeable. What was NOT believeable was that ALL OF A SUDDEN in December, he has his normal betting tickets along with a bunch of $2-10 WPS tickets. It WAS obvious that these were not his tickets, but he still tried to defend that the tickets were his. NOW, how was he busted this time I ask???????
Well they took the time to check the time stamp and teller number on the tickets. Well my buddy didnt think about that soince he cant be in 2 places at once, much less 10 different windows on EVERY SINGLE RACE!!!!
Well the end of this resulted in such a big fine and he wouldnt even divulge the amount. But lets just say that he ended up not making any money on gambling that year!
SO the moral of the story is that the IRS has agents who have SEEN EVERYTHING!! Dont try and pass off other betters tickets as yours if you have shown a pattern in your betting in the past
[This message was edited by playersonly69 on December 11, 2003 at 02:17 AM.]
