Gamblers Could Benefit From An IRS Proposal

The internal revenue service (IRS) has proposed an idea that the entire casino world is fighting against tooth and nail. This proposal, if implemented, would mean that the IRS would be able to trace all slot jackpots starting from as little as 600 dollars. However, alongside this proposal is another change that can actually be to the advantage of gamblers, as far as taxes on gambling winnings are concerned, says Marissa Chien, who is currently Advantage Tax Plus‘ President.

 

IRS would be able to trace all slot jackpots starting from as little as 600 dollars

 

“Playing Session” concept to allow gamblers to report lower income from gambling

The proposal, as already mentioned, would also implement a new concept: playing session. The concept of playing session would involve only continuous play in a single casino on a particular day with the play being conducted on similar machines. This would enable gamblers to report an income from gambling lower than what is mentioned in the W2-G form, which every casino is bound to provide to both the IRS and the gamblers who win jackpots on slots. Marissa Chien, who is one of the authors of the book entitle Tax Help for Gamblers, believes that, for once, the IRS is actually helping out tax payers.

 

IRS to change rule established in 1977

In the year 1977, a rule was set forth that required all casinos to issue a W2-G form to both jackpot winners as well as the IRS. However, according to that rule, the form need only be provided if the minimum winning amount was 1200 dollars. The new proposal, however, has led to over 10000 people signing a petition of the American Gaming Association that requests for the proposal to be scrapped. In fact, Marissa Chien believes that rather than lowering the threshold established by the 1977 rule, the IRS should actually take into account the inflation since then and increase the threshold.