Extension and Modification of Limitation on Wagering Losses: Increase in Threshold for Requiring Information Reporting with Respect to Certain Payees

Representative Dina Titus opposes the proposed regulations because they implement a tax law that allows for "phantom income" by limiting wagering loss deductions to 90 percent of gains. She argues that this policy will drive consumers toward unregulated offshore markets, harm the domestic gaming industry, and is seeking a legislative fix to restore the 100 percent deduction.

Benjamin Jones, a Certified Public Accountant, opposes the proposed rule because it underestimates the economic burden and compliance costs on taxpayers, particularly professional gamblers. He argues that the "minimal impact" finding is flawed, fails to account for "phantom" income, ignores potential decreases in voluntary reporting, and lacks a proper Regulatory Flexibility Act certification for small entities.

Katie Stone, president of The Cleverley Stone Foundation, supports the proposed regulations but argues for specific modifications to ensure they are fair and consistent with case law. She advocates for a "session-based" measurement of wagering gains and losses to prevent "phantom income" and requests specific ordering rules for professional gamblers and updated recordkeeping guidance.

Gary Kondler of Kondler & Associates, CPAs, submitted an outline of topics for oral testimony regarding the proposed regulations on wagering losses. He argues for clear standards, consistent administration, and practical reporting methods (like the session method) to reduce compliance burdens and uncertainty for taxpayers.

Sara O’Connor, a recreational poker player and content creator, opposes the proposed 90% gambling loss deduction cap. She argues that the rule creates "phantom income" by taxing money that was not actually earned, which unfairly penalizes honest, low-stakes players and deviates from economic reality.

Mike Vanaki, representing the American Gaming Association, is requesting the opportunity for the association's Senior Vice President of Government Relations to testify telephonically at the public hearing regarding the proposed rule. The comment does not state a specific position on the action itself.

Joshua Hamlet of Clarity Tax Counsel PLLC opposes the proposed regulation because it fails to explicitly address how the 90% wagering loss cap applies to professional gamblers' business expenses under §162. He argues that the regulation's silence creates an interpretive gap that results in "phantom income" for professionals and calls for an amendment to clarify the statutory treatment and a re-examination of the economic impact certification.

Joshua Thatcher, a professional poker player and YouTube content creator, submitted an outline of points he intends to discuss during a telephonic hearing. He plans to address the realities of professional poker, existing tax laws, and the implications of the proposed new law on the gambling industry.

Derek Brown, an individual taxpayer, opposes the proposed 90% cap on gambling loss deductions, arguing it will unfairly tax supplemental income and drive bettors to unregulated offshore markets. He suggests that if the cap remains, the IRS should allow for "session accounting" that aggregates all wagering activity across all platforms within a 24-hour period.