What does the IRS require to be kept regarding gambling winnings and losses?

The IRS requires that individuals maintain detailed records of gambling winnings and losses to accurately report their income and deduct any losses. This includes a variety of documentation, such as receipts, tickets, statements, or other forms of proof that can substantiate the amounts won or lost. Keeping these records helps ensure compliance with tax laws and provides a clear and organized method for tracking these figures throughout the year.

It is essential to document both winnings and the specific losses, as this allows taxpayers to offset their gambling income with gambling losses, ultimately reducing the taxable amount. The detailed records serve as an audit trail and can aid in substantiating claims if the IRS questions the reported amounts.

The other options do not encapsulate the full requirement set by the IRS. For example, relying solely on bank statements would not provide comprehensive evidence of individual gambling activities. Similarly, limiting records to merely the final payout statements or only keeping track of losses would not satisfy the IRS's requirement for a complete picture of one's gambling activity.