Uncle Sam Still Wants Your Tourney Winnings, But…

…you will have to fill out the paperwork yourself.   

In August, the United States IRS put forth a proposal which would have required casinos to withhold 25 percent of a player’s winnings if they were to cash in a poker tournament for $5,000 or more.  This proposal has now been nixed.   

Instead, winners of $5,000 or more will have to fill out IRS form W2-G upon getting paid, rather than simply having the casino take the money for the government.  The player is then responsible for paying the appropriate taxes by the standard April 15 filing deadline. 

The revision came after representatives from the IRS and American Gaming Association discussed the matter.  Many casinos had actually already followed the exact procedure laid out in the new tax proposal, but it was not a law.  Now all casinos and card rooms will have to abide by this new piece of tax code.