IRS to poker winners: Pay up!

Jerry1

Megatron Star!
Jan 26, 2006
3,338
2
228
Brooklyn, New York
#1
Uh oh....someone tell Anthony.....

IRS to poker winners: Pay up! 1 hour, 19 minutes ago



WASHINGTON - They're not bluffing: Tax collectors will start requiring poker tournaments to report the winners' take.

Casinos and other sponsors of poker tournaments will be required to report winnings of more than $5,000 to the Internal Revenue Service beginning March 4, 2008, the tax agency said Friday.

Sponsors who meet the reporting requirement won't need to withhold federal income tax at the end of a tournament, it said.

If a sponsor does not report winnings, it is responsible for withholding the taxes and sending the money to the IRS, normally 25 percent of the amount subject to reporting.

The IRS said poker tournament winners must provide their taxpayer identification number, usually a Social Security number, to the sponsor. If the winner fails to do so, the sponsor must withhold federal income at a rate of 28 percent.

Casinos and sponsors of tournaments completed before March 4 next year will not be required to report winnings to the IRS or withhold tax.

By law, the winners already must report poker earnings on their federal income tax returns.
Worst part is that once its reported it becomes record and could be admissable during divorce and support hearings.....
 

MJMANDALAY

Registered User
Jan 26, 2005
13,145
1
0
#2
This is really no big deal for several reasons, all of which I won't go into because the IRS lurks here.
 

mikeybot

SPANAKOPITA!!!
Jul 25, 2005
19,293
3,592
623
philly
#3
That's only for tournaments.
A certain person who may or may not have won money wasn't playing in a tournament at the time when he may or may not have won money.