The case turned out to be another Gagliardi jackpot. In January, a judge found Gagliardi's report of his massive losses credible and ruled against the IRS, establishing what likely is a national tax-law precedent.
Because of Gagliardi, gamblers can now back up their claims of losses with receipts and records. That is a significant change from the IRS' advice, which is often ignored, that bettors keep a written log of all gambling activity, said Alvin Brown, who was among the tax lawyers across the nation who highlighted the case on the Internet. link