The response below about the instructions is absolutely correct, and in (just now) reviewing those instructions myself, thorougly, it is clear that the entire amount may be re-assigned to only one or to more other people (I had previously suggested that the "winner" might have to claim at least a small portion, but I was incorrect); the person who "won" doesn't have to keep any of it, so it would work for the original post, where someone was playing with someone else's money, and the someone else was therefore entitled to the full jackpot. The form does, however, require the SS# of the person to whom the winnings are paid, which to the casino is the person sitting at the machine or whose card is in the machine, and the original post said the SS# of that person was missing information at the time of the "hit".
Incidentally, the form does NOT actually re-designate "who won" ' the person receiving the payment, it reports the person(s) to whom the win is to be made taxable, which I find an interesting concept (it implies, in theory, that I could make a jackpot taxable to someone who had sufficient losses to offset it, if they were willing to accept the tax liability in that way, which, if they agree and are given the W2G, would seem to be automatic from that point on). In the instructions, however, it uses the phrase "each winner's share of the winnings", more clearly recognizing that the money is in fact being paid to multiple people.
It is also interesting that someone was able to submit the 5754 with their return and have it work to re-assign the taxability; if that worked, completely contrary to the way the W2G way completed by the payor, and contrary to the instructions on the form (and to all my personal experience with 5754, although I haven't tried this trick), perhaps an affidavit (not a tax form, but just a signed statement) filed with both tax returns, signed by both taxpayers, indicating that the W2G issued to one of them should be assigned in part (or whole) to the other would "work" -- but ordinarily, I would think the IRS may be reluctant to allow the taxpayers to re-assign income like that without at least having a third party (such as the issuer of the W2G) involved. The decision of the IRS may be predicated on whether or not the re-assignment results in a decrease or an increase in the net taxes due.
--BG
ยทยทยท
===============
4b. Re: Jackpot Tax Form Advice -- 5754 vs 1099
Posted by: "vp_wiz" harry.porter@verizon.net vp_wiz
Date: Fri Aug 28, 2009 3:53 pm ((PDT))John Clark wrote:
> I thought anyone could use this form to redirect a w2 form win or
> portion of it to another individual absent the willingness of the
> casino to issue it correctly based on the situation,
>
> We used this form to correct and redirect to me a w2 issued to my
> sons SS number by mistake and we did not involve the casino at all.Form 5754 instructions indicate the form's intent as being for you to provide
information to the casino to assist is the identification of the proper
recipient of W-2G forms for reported winnings. The casino holds the 5754 on
file; it's not submitted to the IRS.I find it uncertain how the IRS would handle a 5754 submitted directly to them
by a taxpayer. It may be the case that they would adjust their records
accordingly. But the safest bet is to ensure that W-2G's are filed by the
casino consistent with how you'll file your return.