IRS Audits for Casino Workers

How casino workers can avoid being audited by the IRS and help for casino workers facing an IRS audit

It’s not difficult to figure out who the IRS is likely to target. Any group of workers who receives a significant amount of cash tips is likely to be heavily scrutinized by the IRS. Why? Because these groups tend to underreport their income, costing the government billions of dollars in taxes.

If you’re a casino worker, you can be sure that the IRS is going to take a closer look whenever you file taxes. If they see anything that appears remotely suspicious, there’s a good chance they’ll be knocking at your door soon enough.

In the past, about 90% of tip-earning workers in Nevada were part of a voluntary program that withheld taxes from their tips. However, with the economy causing tips to go down, many workers are dropping out of this program since it’s essentially withholding more tip income than they actually earn.

Of course, dropping out of this program means casino workers are putting themselves at risk for receiving an IRS audit. If you’re one of the casino employees dropping out of this program, there are several things you should do to avoid being audited.

Track Tips Daily- As much of a pain as it might be, tracking tips is a necessity. The IRS offers worksheets that allow you to daily insert your earnings from gratuities. Each day, you simply insert the amount of tips you earned, the amount you shared with others, and any other relevant information (co-worker’s names, etc.) Not only does this information ensure you pay the right amount of taxes, it also gives you documentation in case the IRS decides to investigate you.
Report Tip Total when Filing- After tracking your daily tips, the next step is to report your totals for the year whenever you file your taxes. Sure, it’s a painstaking process to add up each days tips, but it’s one that you have to do. Make sure your totals are accurate, and always keep the records filed away in a safe location in case questions arise later on.
Seek Professional Help- The most foolproof tax solution for casino workers is to visit a professional tax resolution company. Experienced professionals understand exactly the type of documentation you need, and should an audit arise, they can interact with the IRS on your behalf. It’s a solid investment that could save you a lot of heartache down the line.

About Centsable Accounting

If you’re a casino worker who needs help filing taxes or handling an IRS audit, we can help. We’re Centsable Accounting, Inc., The Tax Problem Solvers, the leading tax resolution specialists. We have extensive experience helping casino workers at every stage of the tax process.
Contact Centsable Accounting, Inc. today for all your tax needs!