IRS notice response · Free check first
A notice about your gambling income?
Get your numbers — and the response.
Get your numbers — and the response.
The free check is directional: it tells you whether the session method likely changes the IRS's proposed amount. The $499 package delivers both halves — your complete session-backed reconciliation for the notice year, and the documentation package to respond with. If the documented reduction is less than the fee, the fee is refunded. If the check shows you genuinely owe, the correct-response package is $99–$149.
You got a notice
You have 30 days.
The clock started when it was mailed — the free check takes two minutes, in your browser.
Which notice did you receive?
CP2501
The IRS found a discrepancy between what you reported and what gambling platforms reported to them. They're asking you to verify.
Most common
CP2000
The IRS is proposing additional tax based on income they believe wasn't reported. This is a proposed assessment — not a final bill.
Also common
Letter 2205 / CP63
An audit or examination letter related to gambling income. More formal — requires structured documentation response.
Less common
Other / Not sure
Not sure which notice you have — or received a state tax notice. TaxBet can still build the documentation package your CPA needs.
We can help
What TaxBet does with a notice
1
Parses your full transaction history from every platform
2
Redoes the math using the IRS session method — the method the IRS recognizes for session reporting
3
Generates an amended return documentation package for your CPA
Why this happened
The IRS sees your
gross payouts.
Not your winning sessions.
gross payouts.
Not your winning sessions.
This is the root cause of almost every gambling-related IRS notice. It isn't fraud and it isn't an error on your part — it's a mismatch between how casinos report and how the law actually works.
A W-2G fires on a single qualifying payout. It doesn't know what else happened that day, at that book, in that stretch of play. Add up a year of them and you get a number that looks like your winnings but isn't.
The session method is what replaces it. Group your play into sessions — one book, one day. Winning sessions are income. Losing sessions are an itemized deduction against that income. TaxBet computes both from your raw transaction data and shows the IRS exactly how the reported figure was built.
A W-2G fires on a single qualifying payout. It doesn't know what else happened that day, at that book, in that stretch of play. Add up a year of them and you get a number that looks like your winnings but isn't.
The session method is what replaces it. Group your play into sessions — one book, one day. Winning sessions are income. Losing sessions are an itemized deduction against that income. TaxBet computes both from your raw transaction data and shows the IRS exactly how the reported figure was built.
Illustrated — tax year 2024. Your real numbers appear after you upload.
Gross W-2G payouts reported to the IRS
$49,100
This is the figure the IRS matched against the return.
Session-method gambling income
$31,400
Winning sessions only. $17,700 of the reported figure was never income.
How the session method reports it
Gross W-2G payouts reported to the IRS$49,100
Winning sessions — session-method income$31,400
Losing sessions$23,200
Deductible against winnings (100% of losses)$23,200
Taxable gambling income, itemizing$8,200
What this actually changes on your return
$17,700 of the reported figure was never income. But the $31,400 that remains still lands in your AGI before any losses come off — and if you take the standard deduction, the losses don't come off at all.
AGI is what sets your child tax credit, education credits, IRA eligibility, ACA subsidy, and Medicare premiums. A notice year can cost you credits worth more than the gambling tax itself. Both figures appear in your reconciliation.
$17,700 of the reported figure was never income. But the $31,400 that remains still lands in your AGI before any losses come off — and if you take the standard deduction, the losses don't come off at all.
AGI is what sets your child tax credit, education credits, IRA eligibility, ACA subsidy, and Medicare premiums. A notice year can cost you credits worth more than the gambling tax itself. Both figures appear in your reconciliation.
The legal basis: IRS Chief Counsel Advice AM2008-011 and Notice 2015-21 establish per-session reporting — grouping transactions by day and location and reporting the net result of each session. Casinos aren't required to apply it when issuing W-2Gs. Your CPA needs session-reconciled data to respond.
Let's get started
Create your account
to build your package
to build your package
Note on your notice: TaxBet processes your prior-year data and generates a complete amended-return documentation package. Your CPA needs this to respond to the IRS by your notice's deadline — typically 30 days from the notice date. Always confirm the exact date printed on your notice.
or
Upload your transaction data
Connect every platform
you used in 2024
you used in 2024
TaxBet needs your full transaction history to redo the math on your sessions and identify the discrepancies in your reported figures. Upload the CSV or Excel export from each platform you used.
Where to find your export: Log into each platform → Account Settings → Transaction History → export the spreadsheet (CSV and XLSX accepted). Select the full calendar year 2024. Can't find it? We provide step-by-step export instructions for every platform.
Reconciliation complete
Here's what TaxBet
found in your 2024 data
found in your 2024 data
Platform breakdown
| Platform | IRS Reported (W-2Gs) | Winning Sessions | Session Net | Discrepancy |
|---|
Documentation package
Your amended return
package is ready
package is ready
Everything your CPA needs to respond to the IRS notice and file a corrected return — in one place.
Missing prior-year records from a book? Here's how to get your transaction history →
Session reconciliation report
Full session log with IRS-compliant grouping, gross wins vs session net, with the loss limitation for your tax year applied
Ready
Corrected Schedule 1 & Schedule A
Gambling income and loss deductions recalculated using session method — ready for your CPA to enter on the amended return
Ready
W-2G reconciliation
Every form matched to its session — the reconciliation the response is built on
Ready
CPA workpaper
Structured workpaper compatible with Drake, ProSeries, and UltraTax — everything your CPA needs to file Form 1040-X
Ready
Send this directly to your CPA
Forward this package to your CPA with one click. They'll receive a secure link containing the documents and a summary of the reconciliation. If you don't have a CPA, TaxBet can connect you with one who specializes in gambling tax cases.
Your dashboard stays live for 90 days while your response is with the IRS (typical processing 16–20 weeks) — track your situation as it resolves.
Never do this again.
The annual plan includes notice protection — and as a notice customer, your first year is $100 off.
Package complete
Your CPA has everything
they need to respond.
they need to respond.
The documentation package has been generated. What happens next depends on your CPA — but you've done your part.
What happens next
✓ Documentation package generated
Session reconciliation, W-2G reconciliation, CPA workpaper — all ready
Send package to your CPA
Your CPA reviews the reconciliation and prepares Form 1040-X (amended return)
CPA files amended return (Form 1040-X)
With session-reconciled income figures and the W-2G reconciliation attached
IRS processes amended return
Typically 16–20 weeks. Notice is resolved when IRS accepts the corrected figures