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Gamblers couldn’t deduct losses. “Professional” gamblers can deduct losses equal to their winnings, but the burden of proving the deduction is on them. To be professional, a taxpayer must be engaged in gambling with the intent to make a profit. In one case, the U.S. Tax Court denied “house players” (a married couple) the right to deduct losses against $16,800 of winnings because they didn’t keep the required records of...

Exempt status revoked, but not denied. A volunteer fire department provided fire protection, ambulance and rescue services to the community. It declared itself tax exempt under Code Sec. 501(c)(5) for labor, agricultural or horticultural organizations. After the department filed a Form 990, “Return of Organization Exempt From Income Tax,” the IRS revoked its exempt status, saying it didn’t qualify as a 501(c)(5). In Private Letter Ruling 201646007, the IRS noted...