Bloomberg: Professional Gambler's Losing Streak Extended by IRS

Bloomberg News picked up on yesterday's post on Tschetschot v. Commissioner, T.C. Memo. 2007-38 (Tax Court: Tournament Poker Is Gambling Subject to § 165(d), Not a Sport) in an article by Ryan J. Donmoyer, Professional Gambler's Losing Streak Extended by IRS:

Professional gambler Gloria Tschetschot, enduring a run of bad luck at the poker table, can't get a break from the federal tax collector either. ...

Gamblers are now "saying, 'I'm a TV star,'" said John Battaglia, director of private client advisers at Deloitte & Touche LLP in New York.  "'That's how I make my money -- by going on TV rather than being a gambler.'" ...

Paul Caron, a University of Cincinnati law professor who first reported on the case in his TaxProf Blog, said the case is significant because "in our increasingly celebrity-obsessed culture, where more and more ordinary people are reveling in their 15-minutes of fame, a version of the taxpayer's argument may ultimately prevail."

Caron said the judge's decision appeared "hesitant" because the tax code section that deals with the losses is somewhat arbitrary. "Why do we treat 'gamblers' like poker players and casino regulars different from others who partake in equally risky investments, such as day traders?"