Uncertainty over how to measure gambling gains and losses could cause some taxpayers to report taxable income that exceeds their actual economic gain, the AICPA told Treasury and the IRS in a comment letter on proposed wagering regulations.
In comments submitted Tuesday, the AICPA urged the agencies to provide guidance on the “session method” for measuring, substantiating, and reporting wagering gains and losses. The need for guidance has grown as gambling increasingly occurs through online platforms, mobile apps, and account-based systems, while existing guidance provides limited direction on how taxpayers should measure gains and losses in those environments.
“As wagering activity continues to evolve, taxpayers,…