The government is not only trying to get on-line poker players and casinos; now they are passing new rules for brick and mortar casino poker tournaments, as well. The IRS will start requiring casinos and poker tournament sponsors to report the winner's earnings.
Beginning March 4, 2008 casinos and other tournament sponsors must report the earnings of any winner who's prize is more than $5000. Sponsors are not required to withhold any of the earnings; just to report them at the conclusion of the tourney.
If they do not report the earnings they can be held liable for up to 25% of the total earnings. All winners must provide their taxpayer ID or social security number to the sponsor. If a player fails to provide the number, the sponsor is required to withhold 28% of their winnings and send it to the IRS.
By law, you must already report your gambling profits on your taxes. Seems the IRS believes we have been under-reporting our earnings and wants to make sure that they get their share. Another way the government is trying to discourage us from playing poker.
Screw the UIGEA and the IRS. If I want to play poker; I'll find a place to play. At least its out in the open now and not in a back-room of a bar somewhere, like it was in my younger days.
Beginning March 4, 2008 casinos and other tournament sponsors must report the earnings of any winner who's prize is more than $5000. Sponsors are not required to withhold any of the earnings; just to report them at the conclusion of the tourney.
If they do not report the earnings they can be held liable for up to 25% of the total earnings. All winners must provide their taxpayer ID or social security number to the sponsor. If a player fails to provide the number, the sponsor is required to withhold 28% of their winnings and send it to the IRS.
By law, you must already report your gambling profits on your taxes. Seems the IRS believes we have been under-reporting our earnings and wants to make sure that they get their share. Another way the government is trying to discourage us from playing poker.
Screw the UIGEA and the IRS. If I want to play poker; I'll find a place to play. At least its out in the open now and not in a back-room of a bar somewhere, like it was in my younger days.
