| Starting next year, casinos and other sponsors of | | | | people know what the new laws are. |
| poker tournaments will have to report winning to | | | | So, beginning March 4, 2008, the IRS will require all |
| the internal Revenue Service. | | | | tournament sponsors to report tournament |
| The new requirement, which goes into effect on | | | | winnings of more than $5,000, on an IRS Form |
| March 4, 2008 was designed to clear up confusion | | | | W-2G. |
| about the tax reporting rules that apply to poker | | | | If any tournament sponsor does not report the |
| tournaments. | | | | tournament winnings, the IRS will enforce the |
| In the past, some casinos and players have not | | | | reporting requirement and also require the |
| fully understood whether poker tournament | | | | sponsor to pay any tax that should have been |
| sponsors were suppose to report the winnings to | | | | withheld from the winner if there is a withholding |
| the IRS and withhold tax from the winnings. | | | | requirement. The withholding amount is normally |
| Evidently, this was not done to the IRS's | | | | 25 percent of any amounts that should have |
| satisfaction and the IRS decided that these people | | | | been reported. |
| needed special attention, which usually means a | | | | So that tournament sponsors can comply with |
| new tax code. There are only so many people | | | | this requirement, tournament winners must |
| that can dummy down before the IRS will devise | | | | provide their taxpayer identification number, |
| a new tax law. | | | | usually a social security number, to the |
| Once a new tax law (code) is implemented, then | | | | tournament sponsor. If a winner fails to provide |
| it becomes the responsibility of the taxpayer to | | | | this identification number, the tournament sponsor |
| "know" the law. What this usually means is; It is | | | | must withhold federal income tax at the rate of |
| up to the large tax software companies to let | | | | 28 percent. |