The IRS Could Collect Over a Billion Dollars in Taxes From Unreported Wagering Income

Date Issued

Monday, September 30, 2024

Submitting OIG

Treasury Inspector General for Tax Administration

Other Participating OIGs

Treasury Inspector General for Tax Administration

Agencies Reviewed/Investigated

Internal Revenue Service

Report Number

2024-300-064

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 4 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
Begin appropriate enforcement actions, starting with notice issuance, on the population of nonfilers with gambling winnings for TYs 2018 through 2020, prioritizing high-income nonfilers, including the top 100 nonfiler cases identified by TIGTA.
2	No	$0	$0
Review the population of nonfilers with gambling winnings for TYs 2018 through 2020 that were not identified by the IMF CCNIP and begin appropriate enforcement actions as warranted.
4	No	$0	$0
The Commissioner, SB/SE Division, should expand the wager codes to specifically include sports betting and use the wager code as a tool to identify potential noncompliance of excise taxes.
5	No	$0	$0
The Commissioner, SB/SE Division, should conduct an environment scan of the current and potential future conditions of the sports betting and online gambling industries, the industries’ risks, and the impact on tax compliance, and develop a process to identify and address Form 730 nonfilers and underreporter noncompliance.