Tax Help

[FatBoy]

I forgot to claim 2 winning Horse bets in 2002. The IRS has sent me a letter saying I owe them $1200. I can show enough losing tickets to cover difference in what I reported.


Do I file an amended return, or just a new Scedule "A", or something else.


Any expert advice would be appreciated.

 

[acehistr8]

How does the IRS know about these two winning bets and not all the losers? Im always interested in how they know.

I think you file a new A and an ammended return.

 

[FatBoy]

If you win a bet that pays more than a certain amount (600/1 i think), you need to sign a 1099 right at the track. I had about 6 of them. Somehow, I forgot/misplaced 2 tickets and only claimed $5k when I should have clamed nearly $7k. You are only allowed to declare losses upto your claimed winnings. So by misplacing the two tickets and the IRS getting the filings from the track.........

 

[Chain Saw]

Question for you. Did you prepare your return yourself or did someone prepare it for you?

 

[FatBoy]

I did it through turbo tax online website

 

[Chain Saw]

No problem. Not that familiar with that software, but I would imagine it has the capability to do the 1040X.

What you probably received is a thirty day letter. It gives you thirty days to respond or to pay, if so inclined.

I would first file an amended return, showing the changes in income and itemized deductions.

After filing the amended return, wait 10 to 14 days and then write the IRS a letter. Refer to the date of their letter and make a copy of the their letter to include with yours.

In your letter state that you have filed an amended return, include a copy of the 1040X and any accompanying forms or schedules. Tell them the day you filed the amended return.

Do everything return receipt requested(the 1040X and your Letter).

Good Luck.

 

[FatBoy]

thanks