Jeff Stellwagon

Breaking: the big tax bill with a provision to repeal the 90% cap on gambling losses was just overwhelmingly voted through, with bipartisan support, to the House Rules Committee. It’s a technical step before it goes to the House floor for a full vote.

IRS GAMBLING HEARING UPDATE: @PokerCPAs tells me his firm submitted an outline for it & will speak at the hearing on Friday, July 17. Big in that a) it ensures there will be a hearing, b) an active practitioner who is well-versed in gambling tax issues will speak & c) it lessens the burden on individuals needing to come forth who may be uncomfortable doing so. Speaking about one's own tax situation in a public setting directly to the IRS panel with your real name out there is tricky. Members of the panel will be intimately familiar with the 90% rule and regulation text. They *may* also ask you questions after your statement. That said, I think some individuals contributing through prepared, written statements can bring value. You also don't have to speak about your own specific situation & can use your time to help educate the panel on yours or others' experiences. No guarantee but I wouldn't be surprised if they do accept more speakers who submit outlines in the next day or two. Deadline was technically July 7 but mention that the 5-day submission period included the July 4 holiday. Counter-productive: Venting or complaining, especially if it's that the 90% rule makes it hard to be a pro gambler. Complaining that people will go to offshore, prediction markets, sweepstakes, etc. Bringing up case law or tax memos if you are not yourself a tax pro or lawyer. I would leave that up to PokerCPAs or other professionals who speak. This hearing can't, by itself, undo the 90% rule. It's law. My hope is that the IRS panel hears some examples of fact patterns that will help educate them & lend to implementing this rule in a "fair and just" way. Who knows... it may open the door for more public input opportunities on gambling tax policy as a whole.