Quote:
Originally Posted by hammerz333
This is just a friendly warning to all who play here. Lets just say this year, I went on a few crazy heaters playing bj on PP. I had no issues getting paid, I kept proper win/loss logs, I have everything organized and ready for tax filing. That's all good until I checked my mail on Friday.
I received 353 individual envelopes containing w2gs all around $2k - $4k, totaling close to $1 million in gross winnings I'd say with only opening 1/4 of these. Under wager type, they say "7_ONLINE_SLOTS", so I thought possibly this was some kind of computer error and would have to wait until today to talk to someone about this. Nope, It was just confirmed by 3 different people that bj on partypoker is considered a slot and they send you a w2g for each WINNING hand over $1200. So if I win 100 hands and lose 100 hands, they still send a w2g for the winning hands. I was playing 1-2 hands at $500 (max) each, and really it looks like they added my original bets into gross winnings also, at the minimum. Sure doubles and splits add up, but no way these numbers are correct.
I am beyond fuming right now. I just got off the phone with a lady who told me, "all you have to do is file win/loss statement against the w2gs." Yea that's wonderful, I also have to pay someone to open the rest of these and file 353 individual forms. These couldn't be sent all in 1 big envelope? On top of that, these numbers are no way correct, and were sent out to the IRS. I'm not sure on the laws (yet), but I am not happy about this at all. Sorry for the long rant, this is just a heads up for anyone who plays here. Also, I'm not sure about the high stakes poker tables, but if they work they same way, I'm sure I have some of those mixed in here as well.
So what was the outcome? Where did you claim the money on the 1040?
I just received a cool 500+ w2G's for a similar reason (was hot in roulette and received a w2G for every bet I won above $1,200) This was on Betfair. Apparently I won a million dollars this year which is weird because I sure don't feel like a millionaire.
My win/loss is a negative. If I report $1M on the w2G form and itemize the losses I end up owing thousands instead of getting thousands back. I'm sure the IRS' system will pickup on me not claiming the figure on the w2G form?
I could show $1,200 on a w2G form and the remaining winnings and losses on a schedule C do 0 out but I do not know how that would fare with the IRS during an audit, fraud? Has anyone ever claimed a lesser amount on the w2g form than the form actually states, and did does that guarantee an audit?