Segal, Cohen & Landis, P.C.
IRS Representation for Professional Gamblers, Poker Players, and Gamers
IRS tax attorneys — Beverly Hills, CA. National representation.
Gambling income is fully taxable, the IRS receives a copy of every Form W-2G a casino issues, and the rules for deducting losses are among the least forgiving in the tax code. Casual players can deduct losses only if they itemize and only up to their winnings. Professional gamblers report on Schedule C and, beginning with the 2026 tax year, may deduct only 90 percent of their losses, which means a player who breaks even can still owe tax on income that never existed. Poker players, sports bettors, advantage players, and esports competitors who earn prize money and sponsorships all face the same document-matching machinery, and a W-2G that does not line up with a return produces an automatic notice.
Segal, Cohen & Landis has represented professional gamblers before the IRS for more than three decades. Managing Partner Samuel Landis has resolved simple and complex gambling-income matters for players from Las Vegas, Los Angeles, and around the country, all handled from our Beverly Hills office by phone, video, and secure document exchange. Every communication is protected by attorney-client privilege.
How We Help
Our Approach to Professional Gambler Tax Attorney
Professional Status and Schedule C Reporting
Whether you are a professional gambler is a legal question the IRS decides under the Supreme Court's Groetzinger standard: regular, continuous activity pursued in good faith for a livelihood. Professional status moves winnings and losses onto Schedule C, allows ordinary business expenses such as travel, entry fees, and coaching, and subjects net income to self-employment tax. We evaluate your facts, document the case for professional status, and structure your reporting so the position holds up in an examination.
Loss Substantiation and Session Accounting
The IRS expects a contemporaneous diary showing the date, type of wager, location, amounts won and lost, and the people present, along with tickets, statements, and casino win-loss reports. A casino statement alone rarely survives an audit. We reconstruct and organize your records, apply session-based accounting for slot and table play where the law allows it, and present losses in the form examiners accept.
W-2G Mismatches and CP2000 Notices
Casinos report slot jackpots, keno, bingo, poker tournament prizes, and other wins on Form W-2G, and the IRS matches every one against your return. A missed or misreported W-2G triggers a CP2000 underreporter notice that proposes tax, penalties, and interest on the gross amount with no credit for losses. We respond to the notice, document the offsetting losses, and resolve the proposed assessment before it becomes a bill.
Audit Defense and Collection Resolution
Gambling returns draw examination because the income is large, irregular, and cash-heavy, and because currency transaction reports and Form 8300 filings give the IRS visibility into your play. We represent professional and high-volume players in IRS audits and appeals, defend against accuracy and fraud penalties, and negotiate installment agreements, Offers in Compromise, and penalty abatement when a balance cannot be paid in full.
How It Works
The Resolution Process
Confidential Consultation
We review your play, your records, any W-2G or 1099 forms, and every IRS notice you have received, then explain your exposure and options in plain terms.
Records Reconstruction
We assemble the diary, statements, and third-party reports the IRS requires, apply the correct accounting method, and quantify what is defensible before anything is filed.
Filing or Response
We prepare accurate current-year and delinquent returns, or respond to the audit, CP2000, or Notice of Deficiency with a documented position and attorney representation before the IRS.
Resolution and Planning
Where a balance remains, we negotiate the payment or settlement structure that fits your income pattern, then set up estimated payments and record-keeping so next season does not repeat the problem.
Ready to Resolve Your Tax Problem?
Our attorneys have helped thousands of clients resolve IRS matters. Your consultation is free and confidential.
Common Questions
Frequently Asked Questions
Are gambling winnings taxable if I did not receive a W-2G?+
Yes. All gambling winnings are taxable income whether or not a form was issued. The W-2G thresholds only determine when the payer must report to the IRS; they do not determine whether you owe tax.
Can I deduct my gambling losses?+
Casual gamblers can deduct losses only as an itemized deduction and only up to the amount of winnings reported. Professional gamblers deduct losses and business expenses on Schedule C, also limited to winnings. For tax years beginning in 2026, deductible losses are further limited to 90 percent of the losses incurred, so a player who exactly breaks even will still show taxable income.
What records does the IRS require?+
A contemporaneous diary or log showing the date and type of each wager, the name and location of the establishment, the amounts won and lost, and the names of others present, supported by W-2G forms, wagering tickets, bank records, and casino win-loss statements. Records created after the fact are given little weight.
How does the IRS decide whether I am a professional gambler?+
Under the Groetzinger standard the IRS looks at whether you gamble full time, in good faith, with regularity, and for the production of income as a livelihood. Hours devoted, record keeping, businesslike conduct, expertise, and history of profit all matter. Professional status is a factual determination we document and defend.
I play in Las Vegas but live in California. Where is my gambling income taxed?+
Federal tax applies regardless of where you play. Nevada has no state income tax, but California taxes its residents on worldwide income, including Nevada winnings, and the Franchise Tax Board audits claimed moves to Nevada aggressively. We handle the federal matter and advise on the state exposure that follows.
I am not a U.S. citizen. Are my winnings taxed?+
Nonresident aliens are generally subject to 30 percent withholding on U.S. gambling winnings and file Form 1040-NR. Some tax treaties reduce or eliminate the tax, and Canadian residents may deduct losses against winnings. We determine what applies and pursue refunds of excess withholding.
Related Tax Services
Beverly Hills · Los Angeles · National
Segal, Cohen & Landis, P.C.
9100 Wilshire Boulevard, 601 East Tower, Beverly Hills, CA 90212
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