IRS Tax Problems Relief: Poker Tournament Winnings Must be.
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IRS has advised that, starting on Mar. 4, 2008, casinos and others sponsoring poker tournaments must report most winnings to winners and IRS. The guidance is designed to clear up confusion about.
USA. UK poker players have it better than most. In the United States, all players are expected to report and pay taxes on all gambling winnings, including online and offline poker. This is generally only enforced for the particularly successful players (for whom it is a serious disadvantage) but there is one interesting possible advantage to be gained in such a system.
This is a discussion on Taxes on Poker Winnings within the online poker forums, in the General Poker section; I know you are supposed to file taxes, but can you avoid it? Honestly the reason I ask.
They believe, probably correctly, that many tournament poker players are not reporting all (or a large portion) of their winnings. Thus, the IRS wants to impose withholding on poker tournaments, by writing a Revenue Procedure that mandates withholding. I believe that this will likely classify poker tournaments as “wagering pools:” 26 U.S.C. Sec. 3402 (a) (1) reads.
Information on reporting of W-2G events and gambling winnings is included within the W-2G forms. If you require further advice or information, you should contact a qualified accountant or tax advisor who can provide you with advice in relation to your personal tax obligations. We will provide you with W-2G forms in relation to reportable events in accordance with Federal tax rules.
Form W2-G does not apply to winnings earned from table games like roulette, crap, blackjack, and baccarat no matter the money won. However, not reporting your winnings through Form W2-G does not absolve you from paying taxes on your winnings or filing your winnings to the IRS. Only that, you are not just required to file Form W2-G for the table.