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Originally Posted by AndyC
As a CPA specializing in tax, I know the issues regarding gambling and taxes. Most people using an LLC would presumably file their taxes as a disregarded entity showing all of their activity on a Schedule C. As such, they would face the same scrutiny as a non-LLC bettor who also files on a Schedule C. So what it really boils down to is how you handle your gambling activities. Using an LLC may put a check mark in your column for intent but in the end substance is more important than form.
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I think if a person has to worry about being scrutinized by the IRS, something is fundamentally wrong with that person's income-generating activiites. The typical thing "wrong" is that the person is not earning enough income to pay the appropriate taxes on that income. In that event, one is well-advised to spend more time and effort on improving one's earning ability and less on scheming and conniving ways to avoid paying the appropriate taxes. "Entrepreneurs" in particular seem to have a difficult time in that area.
If one's business--especially if that business is wagering--does not generate enough income to pay the appropriate taxes on that income, perhaps one is not doing as well as he or she pretends (or claims) to be doing, and should consider getting a real job.
