I gambled on an offshore site called Bovada and withdrew about $60k via Venmo. My bank closed my account due to these transactions. I’ve lost more than I’ve won and don’t want to pay taxes on money I actually owe. Bovada only provides a deposit and withdrawal statement. Should I consult a tax lawyer, CPA, or enrolled agent for this tax situation?
Did Bovada provide you with any sort of tax forms like W-2G for your winnings?
Oakley said:
Did Bovada provide you with any sort of tax forms like W-2G for your winnings?
No, they didn’t issue any W-2G forms. It’s just a basic statement of deposits and withdrawals.
@Finnian
That might be problematic for IRS reporting. Without a W-2G, it’s hard to prove to the IRS that taxes were withheld or should be adjusted based on losses.
Mack said:
@Finnian
That might be problematic for IRS reporting. Without a W-2G, it’s hard to prove to the IRS that taxes were withheld or should be adjusted based on losses.
Exactly. You might need to manually calculate your wins and losses, and report those to the IRS.
@Zane
Would a detailed ledger of wins and losses based on those statements be helpful for tax purposes?
Caiden said:
@Zane
Would a detailed ledger of wins and losses based on those statements be helpful for tax purposes?
Yes, keeping a detailed record is key. You should be tracking every bet, win, and loss to report accurately if audited.
@Jean
Is it even legal to gamble on these offshore sites? Could that cause more issues?
SophyGenesis said:
@Jean
Is it even legal to gamble on these offshore sites? Could that cause more issues?
It depends on the jurisdiction, but it’s generally a grey area. Always best to consult a legal expert on that.
How did the bank handle the situation when they closed your account?
Noor said:
How did the bank handle the situation when they closed your account?
They flagged the frequent large transactions as suspicious and eventually decided to close the account, which is a common response.
@Luca
That must have been frustrating. Have you found another bank willing to handle your transactions?
@Qi
Maybe try a digital bank? They might have more lenient policies toward the nature of these transactions.
Considering your situation, what kind of professional do you think you need to consult first?
Cameron said:
Considering your situation, what kind of professional do you think you need to consult first?
Probably a CPA or an enrolled agent first to handle the tax aspects correctly, especially the wins and losses calculation.
@Noor
A CPA with experience in gambling income and IRS disputes would be ideal.
Micah said:
@Noor
A CPA with experience in gambling income and IRS disputes would be ideal.
I agree. And maybe a lawyer if there’s any legal action from the IRS or other complications.
@Jasper
Definitely, having legal counsel can help navigate any potential legal issues, especially since it involves offshore gambling.
Have you considered the potential IRS audit risk with these large transactions?
Zuri said:
Have you considered the potential IRS audit risk with these large transactions?
Yes, it’s a concern. That’s why I’m considering getting professional help to prepare in case of an audit.