In a message dated 11/23/2003 4:17:19 AM Pacific Standard Time,
vpFREE@yahoogroups.com writes:
From: "Jean Scott" <QueenofComps@frugalgambler.biz>
Subject: Re: Re: Tax QuestionsI wrote: "Federal tax withholding is not required for any amount of
winnings from slot machines, bingo, and keno for U. S. citizens who have proper ID
and give an SS #. .....Federal tax withholding [28-31%) is required for most
other forms of gambling, usually amounts of more than $5,000 that are at
least 300 times as large as the amount wagered."
Read what you wrote. Backup withholding is a collection
problem not an interpretation of the tax law by the Internal Revenue Service. It is
put in place when a situation arises that there is a high probability that
tax will not be collected. Refuse to give your social security number so income
can be matched to your return and banks are required to do backupwitholding
etc.They have taken the taxs from the source you must file to get it back when
before there was a good chance you would not report or not file.You write ...
US Citizen.... Yes, there is a good chance that if you win big and return to
your homeland of communist China we will not invade to collect your tax bill
hence backupwitholding is required of non resident aliens.San Manuel 's income
other than that produced by communal tribal land will by treaty be taxed by
the U.S. . If they wish to maintain that you are on their sovereign soil and are
not member of their tribe and therefore interept the non resident witholding
applies in reverse to you they are perfectly within their rights and concerns
that this is the best way to stem of an invasion out way your opinion that
they are misinterpreting Pub 15 or 15a.
The same idea:it is a collection problem NOT tax law that applies to
this whole thread.You are supposed to report all income you recieve except
that which is by law ruled non-taxable.When enough people are not reporting then
paper checks are put in place.(1099s 0n real estate sales ,1099misc for
contractors paid over 600 1200 on certain gambling winningsetc.etc)These limits
general stay in place forever or until a more general bill cover a much wider
issues passes and indexes everything for inflation. Unless the IRS is being
unidated with W2-g's which they are auditing with no change to the return you have
little chance of getting them to change because you are telling them how to do
their collection business not arguing tax law. A more general issue would
invovle business being overburden with reporting requirements and not just you
and I being able to gamble hassle free, not a big pressing social issue at this
time.
The Law is clear: report all gambling winnings take all gambling
losses up to winnings as an itemized deduction if you itemize otherwise tough or
get a tax education and prove your a gambling professional. The problem is
nobody remembers every bet they won or lost and neither can the IRS so they have
to get reasonable to do their job and collect the tax. If your tax situation
warrants it or you just want to know you can get a good idea of what is
reasonable and how to be prepared for it by buying a book like the one Jean Scott
is going to put out. Like Videopoker there are no absolute guarantees there is
no section of IRS code which says :"videopoker players this means you
"Pechango indian casino did not withhold on two w2g's in 2001 on me however I later
had a client that got a job there and they wanted a writen assurance that
they're federal tax problems were being taken care of before keeping them on as
employee which shows they are very concerned about wanting never to have to deal
with the I.R.S. Ok too much time on my hand back to lurking...
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