IRS notice response · Free check first

A notice about gambling income? Start with your records.

The free check reviews the records you upload and indicates whether TaxBet's documented session methodology may materially change the proposed amount. A paid documentation package ($499.99, one-time) includes the session-based workpaper and materials to support review with a tax professional.

You got a notice

Check the date on your notice.

The free check takes about two minutes, in your browser.

Which notice did you receive?
Your deadline: Your response deadline is printed on your notice. Many notices allow about 30 days, but confirm the date shown on your notice before acting. Your tax professional needs the documentation before that date.

Why this happened

A CP2000 or CP2501 generally compares information reported to the IRS with the income shown on a return. In gambling cases, an information-return total may not include the supporting context a taxpayer or preparer would use to evaluate the filing position. 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. The form isn't wrong — it's a record of one payout, not a measure of your income for the year. Under IRS guidance and case law (Chief Counsel Advice AM 2008-011; Notice 2015-21, a proposed safe harbor; Shollenberger v. Commissioner; Park v. Commissioner), a casual gambler's income may be measured by session rather than by adding up Forms W-2G. TaxBet documents that computation for you and your tax professional to review. Winning sessions are income; losing sessions are an itemized deduction against that income. TaxBet organizes available records into a documented session-based workpaper for review with a tax professional.

Sports wagering.

Illustrated — tax year 2026. Your own figures appear after you upload.
Gross W-2G payouts reported to the IRS$49,100This is the figure the IRS matched against the return.
Session-method gambling income$12,400Winning sessions only. $17,700 of the reported figure is not session-based income.
How the session method reports it
Gross W-2G payouts reported to the IRS$49,100
Winning sessions — session-method income$12,400
Losing sessions$13,000
Deductible against winnings (90% of losses)$11,700
Taxable gambling income, itemizing$700
What this actually changes on your return. $17,700 of the reported figure is not session-based income. But the $12,400 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: Under IRS guidance and case law (Chief Counsel Advice AM 2008-011; Notice 2015-21, a proposed safe harbor; Shollenberger v. Commissioner; Park v. Commissioner), a casual gambler's income may be measured by session rather than by adding up Forms W-2G. TaxBet documents that computation for you and your tax professional to review. Casinos aren't required to apply a session view when issuing W-2Gs, which is why the reconciliation has to be built from your records.
Upload your transaction data

Each platform you used in 2024.

Choose files or drag them here

Supported online sportsbook or iGaming activity exports for your notice year — CSV or XLSX. One export per platform; add as many as you used.

Before you upload — a short checklist
    Your transaction files never leave your device — everything is parsed and computed in your browser. Your account stores only the computed session summary that fills your dashboard, and you can delete it.

    Forms W-2G on your notice or transcript

    Enter each form the notice lists, or type the rows from your IRS Wage & Income transcript (payer, TIN last four, gross winnings, date won, withholding). Type the fields — never upload the transcript, and never enter your SSN. If you have the export for that platform, the records tie each form to a payout. If you don't — the operator left the market, the account is closed, it was in-person play — say so: the form is still reported, at gross, with the reason printed.

    Reconciling your notice year · in your browser

    Plotting your sessions as they happened.

    Nothing leaves this device.

    Counts only on this screen. The reconciled figures appear after the verdict, with the documentation package.

    Your free notice check · tax year 2024

    Here's what TaxBet found in your data.

    Platform breakdown

    PlatformIRS reported (W-2Gs)Winning sessionsSession netStatus

    Computed locally — nothing was uploaded. Directional only until you unlock; the exact figures never render on a free screen.

    Documentation package

    Your documentation package is ready.

    The documentation your tax professional reviews before responding to the notice — in one place. Missing prior-year records from a book? Here's how to get your transaction history →

    What the package contains

    Tick what TaxBet should enclose; the cover lists exactly what is enclosed and nothing else. Items your tax professional supplies are listed on the cover as enclosed separately.

    Audience
    TaxBet encloses
    Enclosed separately by the tax professional

    Session reconciliation report
    Full session log grouped under TaxBet's documented session methodology, with assumptions and citations shown for professional review — gross wins vs session net, with the loss limitation for your tax year applied
    READY
    Filing-oriented Schedule 1 & Schedule A workpaper figures
    Gambling income and loss-deduction figures under the session methodology — prepared for your CPA or EA to review before determining any amended-return treatment
    READY
    W-2G reconciliation
    Supplied forms matched to related sessions where records permit; unresolved items flagged — the reconciliation the documentation is built on
    READY
    CPA workpaper
    Structured workpaper compatible with Drake, ProSeries, and UltraTax — everything your CPA needs to file Form 1040-X
    READY

    What happens next

    Documentation package generated
    Session reconciliation, W-2G reconciliation, CPA workpaper — all ready
    Send the package to your tax professional
    They review the reconciliation and decide how to respond — often a Form 1040-X (amended return)
    Your professional files the response or amended return
    With session-reconciled income figures and the W-2G reconciliation attached
    Your professional decides the response
    Your tax professional determines whether an amended return or other response is appropriate; any tax authority outcome depends on the facts and review. Amended returns typically take 16–20 weeks to process
    Send this to your tax professional. Forward the package to your CPA or EA — it is the documentation they review before responding by the date on your notice. TaxBet prepares the documentation; you or your tax professional respond. Don't have one? Ask us for a referral →
    Your account

    Create the account that owns it

    Your dashboard stays live for 90 days while your response is with the IRS. No password — you sign in with a link emailed to you.

    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.

    Next season, start from your records.

    A one-time season report builds the same documented workpaper before any notice can — from $199.99 for one tax year. See the plans →