Bill Would Increase Slot Machine Jackpot Tax Reporting Threshold to $5,000 | New Jersey News

By WAYNE PARRY, Associated Press

ATLANTIC CITY, NJ (AP) — The gambling industry and some of its allies in Congress are renewing their efforts to reduce the number of slot machine jackpots reported to the IRS.

Legislation introduced Thursday by U.S. Representatives Dina Titus, a Democrat from Nevada, and Guy Reschenthaler, a Republican from Pennsylvania, is touted as a benefit for casinos, which would need to temporarily shut down fewer slot machines while tax and completed forms for winning patrons.

But it would also have the practical effect of preventing more slot machine jackpot winners from having their winnings reported to the government.

The bill would increase the IRS reporting threshold for slot machine jackpots from the current $1,200 to $5,000 and provide a mechanism for future increases based on inflation.

political cartoons

The limit has not been changed since 1977, according to the American Gaming Association, which approved the measure.

“Raising the slot machine tax threshold to account for inflation is a long overdue change that will alleviate unnecessary administrative burdens for casino operators, their customers and an understaffed IRS. and overwhelmed,” said Bill Miller, president and CEO of the association.

Currently, when a casino customer wins a slot machine jackpot of $1,200 or more, the machine is temporarily decommissioned while the customer is required to complete a W-2G tax reporting form.

Congress has ordered the US Treasury Department to consider raising the limit in December 2020, but a report has yet to be released and is nearly a year late, according to a letter sent to the Secretary at Treasury Janet Yellin by six members of Congress.

The bill is co-sponsored by U.S. Representatives Mark Amodei, Republican of Nevada; Steven Horsford, Democrat of Nevada, and Anthony Brown, Democrat of Maryland.

Follow Wayne Parry on Twitter at http://twitter.com/WayneParryAC

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



Source link

Comments are closed.