- 3 -
slot machines. Jackson Rancheria issued to petitioner for 2002,
eight Forms W-2G, Certain Gambling Winnings, showing that
petitioner had total gross winnings of $35,355.
Petitioner filed for 2002 Form 1040, U.S. Individual Income
Tax Return, reporting wages of $3,003. Petitioner also reported
gambling winnings of $35,355 against which she claimed Schedule A
gambling loss deductions of $35,233. On Schedule C, Profit or
Loss From Business, petitioner reported income of $6,992 derived
from gross receipts of $20,305 from her flea market sales.
Petitioner claimed Schedule C deductions of $1,460 for taxes and
licenses expenses, a dependency exemption deduction for MA, and a
child tax credit of $34.2
Petitioner’s return was examined by Tax Compliance Officer
George Martin (TCO Martin). During the examination, petitioner
provided to TCO Martin: (1) A Form 4822, Statement of Annual
Estimated Personal and Family Expenses, indicating that her
personal expenses totaled $10,826, (2) an annual activity report
from Jackson Rancheria substantiating that petitioner had net
gambling losses of $28,183.15 in 2002, (3) a calendar showing the
daily amount of income from her flea market sales, and (4) other
miscellaneous documentation.
2The correct computation of the child tax credit will be
determined by the Court’s resolution of the dependency exemption
deduction issue.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011