Busted by IRS now i owe back taxes on winnings

[Port Conway Lane]

Originally Posted by Seattleallstar

So I finally went down to the IRS to get to the bottom of this, guy at his computer recrunched the numbers told him I certainly lost more than i wont but that you can only deduct the losses up to the amount won. So final verdict after 10 minutes of inputing things into his IRS computer, is that since I dont own any property, pay any other taxes, no state income tax, and basically nothing else. It wasnt enough to offset the taxes from the reported gambling income's taxes. He was like all ready for my check, and im like I didnt come here with the intention of paying, he had a good laugh and was like I understand and I am sorry. I should pretty much trust the IRS?

I had a situation where I won a contest and because it was free to enter I had no outs.I spoke with an irs guy and he let me know I could have offset the winnings had they been achieved from gambling if I could prove I had losses up to the winnings.

I had a similar situation to yours only in that I didn't own property but did pay state taxes.

It wouldn't hurt to try a different representative.