- 13 - Mr. Gagliardi knew that all of the Forms W-2G issued by the casinos would be reported to the Internal Revenue Service (IRS). Occasionally the casinos made errors on the Forms W-2G issued to Mr. Gagliardi. When he noticed the errors, he would call the casinos and they would correct these errors. Mr. Gagliardi retained all his receipts and records related to his gambling winnings and losses, including but not limited to: ATM receipts, copies of checks cashed at the casinos, bank and credit card statements reflecting withdrawals made at the casinos, and Forms W-2G he received from the casinos. Mr. Gagliardi provided his tax return preparer (Mr. Hunner) with all his receipts and records related to his gambling winnings and losses for use in preparing Mr. Gagliardi’s income tax returns for the years in issue. This was the same method employed by Mr. Gagliardi and Mr. Hunner when Mr. Gagliardi owned American Redball (his trucking business), and Mr. Gagliardi provided the similar records and receipts to Mr. Hunner. Mr. Gagliardi believed that the records he provided to Mr. Hunner substantiated his expenses (i.e., gambling losses), just as with American Redball. Mr. Gagliardi’s Tax Returns and Respondent’s Determinations for 1999, 2000, and 2001 Federal income tax of $186,621, $186,623, $183,431 (totaling $556,675) was withheld from the gross annual lottery payments made to Mr. Gagliardi during 1999, 2000, and 2001, respectively.Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NextLast modified: March 27, 2008