Per an article in today's Las Vegas Sun (go to lasvegassun.com, the
link to the article is on the home page) the IRS has rescinded it's new
rule of witholding 25% of poker tournamnet winnings in excess of
$5,000.
Evidently the IRS got lobbied hard by the casino industry. It was the
American Gaming Association that came to the rescue, arguing that it
would probably destroy the poker tournament industry.
<<Per an article in today's Las Vegas Sun (go to lasvegassun.com, the
link to the article is on the home page) the IRS has rescinded it's new
rule of withholding 25% of poker tournament winnings in excess of
$5,000. Evidently the IRS got lobbied hard by the casino industry. It was the
American Gaming Association that came to the rescue, arguing that it
would probably destroy the poker tournament industry>>
But the IRS DID get something they wanted in these negotiations - a paper trail for more gamblers. Casinos will be required to give W-2Gs to all poker tournament winners $5000 and over. Some casinos had been doing this earlier, but many had not. This is going to hit a lot of tournament players who operated strictly on a cash basis and stayed under the IRS radar.
I'm wondering if this new regulation may help slot and VP tournament players. Although it pertains to poker, perhaps casinos will use this same policy for all kinds of tournaments and give W-2Gs instead of 1099s. That would simplify things for many of us.
________________
Jean $�ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
Jean said, "....perhaps casinos will use this same policy for all
kinds of tournaments and give W-2Gs instead of 1099s. That
would simplify things for many of us."
Why is a W-2G more simple for us than a 1099?
On 10/5/07, Jean Scott <queenofcomps@cox.net> wrote:
But the IRS DID get something they wanted in these negotiations - a paper
trail for more gamblers. Casinos will be required to give W-2Gs to all
poker tournament winners $5000 and over. Some casinos had been doing this
earlier, but many had not. This is going to hit a lot of tournament
players
who operated strictly on a cash basis and stayed under the IRS radar.I'm wondering if this new regulation may help slot and VP tournament
players. Although it pertains to poker, perhaps casinos will use this
same
policy for all kinds of tournaments and give W-2Gs instead of 1099s. That
would simplify things for many of us.
________________
Jean $¢ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
[Non-text portions of this message have been removed]
<<Why is a W-2G more simple for us than a 1099?>>
Then there is no question about casinos tournaments being part of your "gaming income." The IRS has been questioning some people on that issue when they combine 1099s with W-2Gs.
________________
Jean $�ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
Jean Scott wrote,
"<<Per an article in today's Las Vegas Sun (go to lasvegassun.com, the
link to the article is on the home page) the IRS has rescinded it's new
rule of withholding 25% of poker tournament winnings in excess of
$5,000. Evidently the IRS got lobbied hard by the casino industry. It was
the
American Gaming Association that came to the rescue, arguing that it
would probably destroy the poker tournament industry>>
But the IRS DID get something they wanted in these negotiations - a paper
trail for more gamblers. Casinos will be required to give W-2Gs to all
poker tournament winners $5000 and over. Some casinos had been doing this
earlier, but many had not. This is going to hit a lot of tournament players
who operated strictly on a cash basis and stayed under the IRS radar."
My understanding is that the IRS will allow casinos that agree to the "Binion's Closing Agreement" to not have to withhold under the new Revenue Procedure. That would mean W-2Gs will be issued to anyone who wins $600 or more (gross) in a poker tournament. I'm supposed to see something in writing about this in a couple of weeks and will advise then.
As Jean correctly points out, the whole goal of this was to obtain a paper trail on who was winning what and get those individuals to file tax returns showing the gambling wins. Indeed, this reason was mentioned in the IRS' "Priority Guidance Plans" for the last three years. Unfortunately, as we all know gamblers are not well treated under the Tax Code; many of those who will show $0 in net winnings will find their taxes increase as a result of the reporting.
-- Russ Fox
http://www.taxabletalk.com/
[Non-text portions of this message have been removed]