The national casino industry and its allies in Congress are trying to send a message to the IRS: Lowering the threshold for reporting slot winnings is a bad idea.
Geoff Freeman, president of the Washington, D.C.-based American Gaming Association, said in a conference call today that about 13,000 people from across the country had spoken out against the potential threshold change. The IRS has been seeking public input on the possibility of someday lowering the amount at which casinos must report slot winnings from $1,200 to $600.
The idea comes as the IRS considers changes that would “update and simplify” gaming-related regulations. The agency plans to keep the current slot winnings threshold in place for now, but it’s accepting comments on the feasibility of a lower reporting requirement.
Casinos and gamblers don’t like the lower threshold because when winnings from a slot machine hit that $1,200 mark, the machine locks up until paperwork is filled out. Changing the level to $600 would mean more frequent lock-ups and therefore less revenue as more machines are inactive. It would also place a bigger burden on customers and casino employees, opponents of the idea say.
“The IRS could soon force casino guests to more frequently fill out paperwork, which would severely undermine the customer experience,” notes a from the gaming association. “Further, this potentially burdensome requirement would cost states and cities tax revenues that pay for vital public services, such as teachers, firefighters and road improvements.”
The gaming association says the petition has received about 10,000 signatures, and about 3,000 comments have been filed with the IRS. The IRS is accepting comments until Tuesday.
Seventeen members of Congress also took aim at the idea of lowering the threshold in a letter to the IRS dated May 29. Nevada Reps. Joe Heck, Mark Amodei, Dina Titus and Cresent Hardy were among those who signed the letter.
“We strongly believe the IRS should not consider any reduction of this reporting threshold, as any lowering from $1,200 would have significantly negative impacts on casino operations and customers,” the letter reads. “Any reduction in this threshold would dramatically raise costs to comply, decrease gaming revenue due to more frequent slot machine ‘lock-ups,’ and would greatly increase the burden workload for IRS.”
Lawmakers in the letter also criticized the idea that casinos should use electronic player tracking technology to report winnings. The letter said businesses would incur significant costs and lost revenue to comply and that the change would create “disparate impacts” on the gaming industry. The IRS should instead consider an “opt-in” approach, lawmakers recommended.
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Geoff Freeman, president of the Washington, D.C.-based American Gaming Association, said in a conference call today that about 13,000 people from across the country had spoken out against the potential threshold change. The IRS has been seeking public input on the possibility of someday lowering the amount at which casinos must report slot winnings from $1,200 to $600.
The idea comes as the IRS considers changes that would “update and simplify” gaming-related regulations. The agency plans to keep the current slot winnings threshold in place for now, but it’s accepting comments on the feasibility of a lower reporting requirement.
Casinos and gamblers don’t like the lower threshold because when winnings from a slot machine hit that $1,200 mark, the machine locks up until paperwork is filled out. Changing the level to $600 would mean more frequent lock-ups and therefore less revenue as more machines are inactive. It would also place a bigger burden on customers and casino employees, opponents of the idea say.
“The IRS could soon force casino guests to more frequently fill out paperwork, which would severely undermine the customer experience,” notes a from the gaming association. “Further, this potentially burdensome requirement would cost states and cities tax revenues that pay for vital public services, such as teachers, firefighters and road improvements.”
The gaming association says the petition has received about 10,000 signatures, and about 3,000 comments have been filed with the IRS. The IRS is accepting comments until Tuesday.
Seventeen members of Congress also took aim at the idea of lowering the threshold in a letter to the IRS dated May 29. Nevada Reps. Joe Heck, Mark Amodei, Dina Titus and Cresent Hardy were among those who signed the letter.
“We strongly believe the IRS should not consider any reduction of this reporting threshold, as any lowering from $1,200 would have significantly negative impacts on casino operations and customers,” the letter reads. “Any reduction in this threshold would dramatically raise costs to comply, decrease gaming revenue due to more frequent slot machine ‘lock-ups,’ and would greatly increase the burden workload for IRS.”
Lawmakers in the letter also criticized the idea that casinos should use electronic player tracking technology to report winnings. The letter said businesses would incur significant costs and lost revenue to comply and that the change would create “disparate impacts” on the gaming industry. The IRS should instead consider an “opt-in” approach, lawmakers recommended.
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