IRS Proposes Lowering Win Reporting Threshold in the US by a Half

IRS Proposes Lowering Win Reporting Threshold in the US by a Half

Written by: Emilija Zivulovic on 11/03/2015 10:15

The US Internal Revenue Service or IRS is trying to change the tax code in order to lower the threshold for gambling win reportage. The proposal suggests that casinos & players have to report wins on slots, keno and bingo of $600 or more as taxable income. The current threshold of $1,200 has been in place for the past 40 years despite inflationary trends.

The proposal is strongly opposed by the US land casino companies, which are backed by the American Gaming Association. The AGA claims that the change is unwanted and unnecessary; creating additional administrative burdens that could place the gambling industry at a competitive disadvantage with other forms of entertainment

Current IRS regulations require casinos to lock machines where a win in excess of $1,200 has been made ($1,500 in the case of a keno jackpot), until the casino files a tax information form on the winning, resetting the machine. Lowering the jackpot threshold to $600 could increase the number of times the game is shut down.

The IRS has set the casino industry a 90-day period to respond to the suggested changes in regulation, but also noted that there is no guarantee it will make the revision.

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