In 2011 I played in a WSOP event...I cashed the event for a little more then $10,000. A week later I took this $10,000 and bought in to the Main Event and busted without a cash. Today I received a letter from the IRS saying I owed them $3,100 in taxes for 2011 gambling profits. I definitely lost a lot of money in 2011 gambling and have documents (my Main Event buy in) showing directly where the profits went to. It says I have until Nov 27th to either accept what I owe them and pay or I can submit a claim with documents to dispute it. I filed my 2011 taxes with an accountant who said I didn't need to claim the winnings because I had gambling expenses offsetting it. Does anyone have any first hand experience regarding a situation like this?