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theft of Government property, once from 1980 to 1984 and again
from 1986 to 1989.
During 1990 and 1991, the years in issue, petitioner
frequented Colorado dog racing tracks and played the slot
machines in Las Vegas. For 1990 and 1991, petitioner reported
his gambling winnings as $87,619 and $203,567, respectively, and
his gambling losses as $78,864 and $187,000, respectively. The
winnings reported on petitioner's Federal income tax returns for
1990 and 1991 are in excess of the amounts stated as reported
income for gambling winnings3 on petitioner's Forms W-2G.4
3For 1990 and 1991, petitioner reported $87,619 and $203,567
respectively as gambling winnings. However, petitioner's Form W-
2G income statements only showed petitioner winning $21,800.70
and $92,625.70, respectively.
4The payer of proceeds from a wager must report gambling
winnings on Form W-2G if a taxpayer receives:
(1) $600 or more in gambling winnings from:
(a) Horse racing, dog racing, jai alai, state
lotteries, and other wagering transactions
* * * [in which] the winnings are at least
300 times the amount of the wager; or
(b) Lotteries, raffles, sweepstakes, wager-
ing pools, or drawings, such as those
held by churches or civic organizations;
(2) $1,200 or more of gambling winnings from
bingo or slot machines; or
(3) $1,500 or more of * * * [winnings] from keno.
Instructions to Recipient for IRS Form W-2G, Statement for Recip-
ients of Certain Gambling Winnings.
Under the general rule of sec. 3402(q) certain gambling
winnings are subject to withholding:
Sec. 3402(q) Extension of Withholding to Certain
Gambling Winnings.--
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