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Petitioner had gambling losses in 2001 in excess of his gambling
winnings.1
On his timely filed 2001 Federal income tax return,
petitioner did not report any gambling winnings or Social
Security benefits. Petitioner’s 2001 return reflects $14,119 in
adjusted gross income, consisting of $13,657 in pension payments,
$39 in taxable interest, $916 of ordinary dividends, and a
capital loss of $493. Petitioner claimed the applicable standard
deduction of $5,650.
In a notice of deficiency, respondent determined that
petitioner received $7,340 in unreported gambling winnings and
$1,002 in unreported taxable Social Security benefits (following
a computational adjustment to petitioner’s adjusted gross
income). Further, respondent determined that petitioner is
entitled to deduct gambling losses of $7,340.
1 Petitioner admits that he received additional gambling
winnings of less than $1,200 on several occasions that were not
subject to information reporting. See sec. 7.6041-1(a),
Temporary Income Tax Regs., 42 Fed. Reg. 33286 (June 30, 1977);
see also Lyszkowski v. Commissioner, T.C. Memo. 1995-235
(describing the information reporting requirements for slot
machine jackpots), affd. without published opinion 79 F.3d 1138
(3d Cir. 1996). Respondent’s determination of the deficiency was
limited to the gambling winnings subject to information
reporting, and petitioner’s other winnings are not at issue in
this case.
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Last modified: May 25, 2011