- 14 - Additionally, child support of approximately $6,500 per month was deducted from the gross annual lottery payments made to Mr. Gagliardi during the years in issue. Mr. Hunner prepared Mr. Gagliardi’s Federal income tax returns for 1997, 1998, and the years in issue. Mr. Hunner used the same method to prepare Mr. Gagliardi’s returns for 1997 and 1998 as he did for the years in issue. Mr. Hunner never stated to Mr. Gagliardi that the records Mr. Gagliardi gave to him were inadequate to prepare his tax returns. After receiving voluminous documentation and records from Mr. Gagliardi regarding his gambling during the years in issue, Mr. Hunner was comfortable preparing Mr. Gagliardi’s returns for the years in issue, especially with regard to the gambling loss deductions claimed on the returns, given the nature and extent of Mr. Gagliardi’s gambling. Mr. Hunner believed that Mr. Gagliardi’s gambling losses were greater than the amounts of gambling loss deductions claimed on Mr. Gagliardi’s returns. Mr. Gagliardi reported the following amounts on his returns: Year Casino Winnings State Lottery Winnings Casino Losses 1999 $127,073 $666,500 ($502,433) 2000 270,052 666,500 (802,921) 2001 631,629 666,500 (1,170,140) In calculating the amounts of gambling loss deductions to claim on Mr. Gagliardi’s returns, Mr. Hunner added all of Mr. Gagliardi’s checks, charges, and withdrawals made at the casinosPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: March 27, 2008