Irs Gambling Joke
- Gambling acts as a stupidity tax, which means that it is a tax on the poor. And if you are not poor when you start gambling, you soon will be. It is an unfair tax, in some ways, as it panders to the weaknesses of the human psyche, weaknesses that are often caused by more by chemical imbalances in the brain than by any moral failings.
- All gambling is the telling of a fortune, but of a monstrously depleted fortune, empty of everything save one numerical circumstance, shorn of all such richness as a voyage across the water, a fair man that loves you, a dark woman that means you harm.
- In N.Europe gambling is tax-free, but there used to be 10% on betting in the UK. You could choose to pay this on your stake (i.e. £10 bet plus £1 tax) and have ALL the winnings tax-free OR not pay tax on the bet and get 10% of the returns removed upon cash-out.
He used his work address for his gambling correspondence: W-2Gs (the IRS form used to report gambling winnings), wire transfers, casino mailings. Even his best friend and brother-in-law, Carl. In gambling, there are winners and losers. But even the winners can be losers if they don't pay their taxes! Any money you win gambling or wagering is considered taxable income by the IRS as is the fair market value of any item you win.
The IRS isn’t leaving gambling reporting to chance. It has issued new final regulations clarifying and expanding the rules for payors of slot, bingo and keno winnings. Most notably, in response to an outcry from the gambling industry, higher ...
The IRS isn’t leaving gambling reporting to chance. It has issued new final regulations clarifying and expanding the rules for payors of slot, bingo and keno winnings. Most notably, in response to an outcry from the gambling industry, higher thresholds for reporting responsibilities were retained (IRS Reg. 1.6401-10, 12/29/16).
Irs And Gambling Man Jokes
“Commentators overwhelmingly opposed the idea of reducing these reporting thresholds. Payors opposed lowering the thresholds because it would result in more reporting, which would increase compliance burdens for the industry,” said the IRS in the regulations. “In fact, many commentators suggested that rather than reducing the current thresholds, they should be increased to account for inflation. These final regulations do not change the existing reporting thresholds for bingo, keno, and slot machine play.”
For taxpayers, gambling winnings are treated as taxable income on federal income tax returns, but the tax may be offset by losses up to the amount of the winnings. For example, if you win $5,000 during the year and incur losses of $4,500 in the same year, you owe tax on only $500. The losses are reported on Schedule A, but aren’t subject to the usual 2%-of-AGI floor for miscellaneous deductions.
For businesses, information reporting is required for payments of $600 or more to a taxpayer during the year. While temporary regulations had boosted the reporting thresholds for winnings from bingo games and slot machines to $1,200 and $1,500 for keno games, proposals would have lowered these amounts back to $600.
The information is reported on Form W-2G, “Certain Gambling Winnings,” which must be filed by February 28 of the following year; March 31, if filed electronically.
Now the new regulations hold the line on the reporting thresholds for bingo, slots and keno games. The regs also retained the rules, with minor modifications, on identifying information that must be provided by gamblers. In addition, they adopted an “aggregate reporting” rule, with winnings for a single gambling session being allowed as an alternative to reporting each win that exceeds the required threshold. A single session is defined as the time between a gambler placing a wager on a certain game and completing the last wager on the game before the end of the same calendar day.
The IRS also agreed to allow gambling institutions to use “gaming days” instead of calendar days for reporting periods if its use is uniform. Gaming days are generally used for other accounting purposes.
Irs Gambling Jokes
Finally, the new final regulations did not include proposed rules that applied to electronically tracked systems for slot machines. The proposed regulations required reporting for winnings at least $1,200 within a calendar day session. However, the casino industry successfully argued that the technology would not support this and that it would “chill customer use.” Count this as a win for the casinos.