I’ll See Your 1099 And I’ll Call… My Lawyer
You’ve always known that you’re supposed to report your gambling winnings on your taxes, right? Well, the IRS is making it a little easier (for them) to make sure that happens.
Beginning March 4, 2008, casinos and other sponsors of poker tournaments will be required to report most winnings to winners and the Internal Revenue Service. After that date, the IRS will require all tournament sponsors to report tournament winnings of more than $5,000.
In order to ensure compliance, tournament winners must provide their taxpayer identification number (in most cases, a Social Security number) to the tournament sponsor. Failure to provide a taxpayer identification number means that the tournament sponsor must automatically withhold 28% of winnings for tax purposes.
Your call.
