Taxpayer was not entitled to additional deductions for state and local sales taxes or to reduce reported gambling winnings, but was liable for an accuracy-related penalty due to a substantial understatement of income tax, the U.S. Tax Court held, affirming the IRS’s determination. Taxpayer, an individual, claimed deductions on his 2020 tax return for state and local general sales taxes of $8,350 and gambling losses of $30,100, while reporting gambling winnings of $30,100. The IRS examined the return and issued a notice of deficiency reducing the sales tax deduction to $1,466 and the gambling loss deduction to $16,140, while imposing ...