HomePublicationsNewsletter ArchiveVolume 25Issue 14U.S. REPRESENTATIVES REQUEST TAX REPORTING STANDARD REVISIONS

On May 13, 2019, Dana Titus (D-NV) and Darin LaHood (R-IL) sent a bipartisan request to the Department of Treasury requesting that the Treasury increase the reporting threshold for slot and bingo winnings.  The letter, which can be read in its entirety here, notes that the $1,200 reporting threshold was established in 1977 and has not been updated since.  Reps Titus and LaHood note that with inflation, the actual value has decreased significantly and that the reporting (required on Form W-2G) imposes a significant regulatory burden on the gaming industry.  They propose increasing the threshold to $5,000.

As a practical matter, whenever a slot machine hits on a jackpot of $1,200 or above, the machine locks and a casino employee must visit the machine, collect information from the player, and issue a W-2G.  The representatives urged Treasury to reconsider the regulations as it would both reduce the paperwork burden on gaming operators and improve the player experience.  The letter cites a deadline of June 10 for a response from Treasury indicating whether Treasury will utilize its administrative regulative authority to raise the limit or the representatives suggest they intend to propose legislation that will enact the change.

The American Gaming Association applauded the action.  “Casinos are the only businesses that must take their assets out of production to comply with their tax information reporting obligations. The current federal regulations on reporting slot machine winnings have been outdated for decades, creating inefficiencies, paperwork and unnecessary hurdles,” said Bill Miller, president and chief executive officer of the American Gaming Association. “The gaming industry strongly supports the efforts of Reps. Titus and LaHood to update the antiquated threshold for reporting slot machine winnings while relieving associated burdens for casinos, their patrons and the IRS alike.”

 

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