Traci and Ronald Tomko, recreational gamblers who played the slot machines, reported on their tax return that they had gambling income of $21,100 and gambling losses of $21,100.

When you win more than $1,200 at the slots, the casino must report your winnings to the IRS. In this case, the casinos reported to the IRS that the Tomkos had gambling winnings of $44,464. This did not match the $21,100 on the Tomkos’ tax return; thus, the Tomkos brought themselves to ... Log in to view full article.