i forgot to mention my gambling winning but i got the deduction of gambling loss in sch A. I am kind of nervous how IRS will respond to my mistake. Actually my preparer did not advise about reporting any gambling income. what should i do now.
2007-03-26 15:58:48 · 13 answers · asked by Pushpinder K 1 in Business & Finance ➔ Taxes ➔ United States
They'll simply disallow the deduction since you didn't claim the winnings -- and they'll probably be asking questions about the unclaimed winnings as well. It sounds like your tax preparer is a dud; this is a "tax 101" issue, not any kind of advanced concept. Tell him or her to get their head out of their backside and prepare an amended return (with out charge of course) for you to file by April 17, 2007. You'll have to pay the additonal tax by then to avoid any penalties or interest.
Oh yeah. Once they're prepared the amended return, kick them to the curb and find a competent one for next year.
2007-03-26 16:07:26 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 2⤋
If your preparer did not advise about reporting gambling income, but let you take the gambling loss deduction, you need to get a new preparer. The preparer should now know what to do since an error has been made. You need to file an amended return and he/she should do it for free! If you are not going to allow that preparer to do it, call the IRS and ask them what form you need and be prepared to pay the additional tax before the deadline or you can expect a penalty or interest to be due also.
2007-03-26 16:05:58 · answer #2 · answered by butrcupps 6 · 0⤊ 1⤋
They'd probably just disallow the deduction, and send you a letter requiring that you pay back the taxes you saved from this, plus interest and possible penalties. This could take months to over a year for them to catch up to it.
Your best course of action would be to prepare an amended return, claiming your winnings and dropping any losses that exceeded your winnings - your "preparer" who screwed this up in the first place should do that at no charge. If you went someplace that has multiple preparers, explain your situation to a supervisor and ask that someone more experienced do the amended return.
I hope you didn't pay the "preparer" very much who did your return and messed up something that simple. Find a different preparer next time.
2007-03-26 17:50:21 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
You'll need to file an amended return. Your preparer should have the proper form. BUT gambling winnings are offset by gambling losses. For example, if you win $1000 but lose $500, you only have to claim $500 gambling income. Your preparer may have done that without you realizing it.
2007-03-26 16:03:25 · answer #4 · answered by Kat 4 · 0⤊ 1⤋
Call the IRS on the phone and tell them about the mistake. There's a toll-free number: 800-829-1040. They will tell you what to do. They will probably say to submit an amended return.
2007-03-26 16:03:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I'd put in a revision, or have your preparer do it. You don't want to end up in trouble over this. If you won a significant amount of money, the IRS will have a record of it; better you approach them than the other way around.
2007-03-26 16:03:13 · answer #6 · answered by Nanneke 4 · 0⤊ 0⤋
Just file an adjusted/amended return. Take your original return and go to turbo tax online. Fill in all the information--from your original, like you were filling out your first, and enter it as an adjusted return...the program will allow you to save the information (if you want) or delete the information--before you send it--if you want to send it through them (you can see if your accountant/preparer did indeed screw up--and if they did, you can have them resubmit it for free if you paid them...if it was a relative that did it for free, be kind, ---and it (Turbo) will tell you how much you owe the governments (State and Federal).
2007-03-26 16:04:47 · answer #7 · answered by What, what, what?? 6 · 0⤊ 1⤋
Your preparer screwed up, you can only report gambling losses to the extent of winnings, You cannot report more loses than winnings, and you better have proof of somekind for that...Nuf Said
2007-03-26 16:03:54 · answer #8 · answered by Elo Fudpucker 5 · 0⤊ 1⤋
Amend your return. Otherwise, should the IRS find out, they will not be pleased. There's still time.
2007-03-26 16:02:34 · answer #9 · answered by Mark G 4 · 0⤊ 0⤋
how much did you win and how much did you lose? If under $150 no worries over that you'll need to file an amended return (and the tax preparer should of told you about it make him/her redo it at no charge to you)
2007-03-26 16:01:36 · answer #10 · answered by Anonymous · 0⤊ 3⤋