Proposed IRS Tax Reporting from Gambling Winnings

[Vman96]

Isn't Mo. the state that allows someone ticketed with a moving violation to pay double the fine to keep the infraction off of their driving record?

Sort of. In Missouri, for most generic speeding violations you can go to a "traffic law center" and have your ticket "fixed" to a non-moving violation if you're willing to pay.

My ex got caught doing something like 84/70 in Foristell (a well-known speed trap west of the STL suburbs on I-70) about a decade ago. She told me she turned her ~$100 speeding ticket into a $215 ticket for "Illegal Parking on Ralph St." It may have been Ralph Drive in reality, since that's an actual street in Foristell about 0.5 miles from the interstate according to Google.

It's a total racket here. Ferguson, although I'm sure they are bad about it and racially biased over it, isn't even close to being the worst in the state.

But at least for the interstate, Missouri is pretty safe to go 9 or under above the speed limit. The 2 tickets I've got for speeding here have both been 12 over...

[olds442jetaway]

Yeah, and notice how they place those traps mostly in downhill areas.

[ko king]

[QUOTE=ko king]

Isn't Mo. the state that allows someone ticketed with a moving violation to pay double the fine to keep the infraction off of their driving record?

Sort of. In Missouri, for most generic speeding violations you can go to a "traffic law center" and have your ticket "fixed" to a non-moving violation if you're willing to pay.

My ex got caught doing something like 84/70 in Foristell (a well-known speed trap west of the STL suburbs on I-70) about a decade ago. She told me she turned her ~$100 speeding ticket into a $215 ticket for "Illegal Parking on Ralph St." It may have been Ralph Drive in reality, since that's an actual street in Foristell about 0.5 miles from the interstate according to Google.

It's a total racket here. Ferguson, although I'm sure they are bad about it and racially biased over it, isn't even close to being the worst in the state.

But at least for the interstate, Missouri is pretty safe to go 9 or under above the speed limit. The 2 tickets I've got for speeding here have both been 12 over... [/QUOTE]

I thought that was the case, break the law and as long as you are willing to pay the bucks the state is willing to make the infraction pretty much go away. Now that kind of gets me to thinking, an individual can break the law, pay a few hundred bucks and the state is willing to look the other way, makes me wonder if maybe a corporation say possibly a casino could get away with doing something similar.

[JIMDUECE`SWILD]

 http://www.pressofatlanticcity.com/news ... 4c242.html

[olds442jetaway]

I read the article and have to agree with the casino lobby that the proposed 600- W2-G would be very bad for business. For one, the machine would be off line and not earning anthing for the 20-30 minutes it takes to get paid and do paperwork. Another thing is some gamblers just won't want to deal with the tax situation at all and therefore make sure they gamble in lesser amounts to make sure they don't earn a jackpot of over 600 bucks. The casinos can't even auto generate a W-2G that spits out of the machine even if they had that technology because often times the person sitting at the machine and the players card in the slot do not match. The rule is the one sitting at the machine when it hits is the one who gets the W-2G.
     There is a possible way casinos could get around the rule if it does take effect. They could offer jackpost of less that 600- on many machines and pay higher amounts for the hits that would be just below jackpot level. For instance, on a job game or similar, they could reduce the Royal amount from 1k to say 500 bucks, but increase the amount a regular straight flush pays. Of course that would completely change the strategy. They would have to make it such that their cut would still be in the same percentage range which could be easily done. The same thing could be done with regular slots, but most casual gamblers look forward to that chance however small of a nice hit of 1k or more no matter what game they are playing. The bottom line is the IRS will do whatever it wants unless somehow the casino lobby is strong enough to make it change its mind. Lots more to follow I'm sure.

     Edited to add....The 600- rule if implemented would also have dire consequences for those who live in states like mine that tax people on gross gambling winnings and do not allow a writeoff like the IRS does if you itemize your deductions. A regular gambler could easily have gross winnings of several hundred thousand dollars a year or more and still lose money. If the state taxed that number at say a 6 percent rate which some states have, one could easily end up with a state tax liability of 10k to 50k due to the rules some states have of taxing gross winnings. They should somehow have to modify the rules on defining what a gambling session really is and really with the technology today just net everything out up front, but that will never happen. The government both state and federal is too desperate for money from us.

[Tedlark]

  What I find laughable in this whole thing, and I don't recall anyone bringing it up, but I could win 8k on a craps table and there would be no paperwork what so ever.

[notes1]

  What I find laughable in this whole thing, and I don't recall anyone bringing it up, but I could win 8k on a craps table and there would be no paperwork what so ever.
  good point. of course, the government is going to where the money is, where they can get the most. and, that is with those who play the machines. i am sure some hate when i bring up stats like this, but when 60% of all tax filers, pay just 3% of all federal income tax and folks keep asking/demanding more stuff from the government, this is what happens. the money has to come from someplace and additional fees/taxes on smoking/drinking/gambling has become socially acceptible.  i will assure one that some of the very same folks who will fault raising gambling taxes, will have no problem asking the government to provide more stuff to more people. 

[alpax]

  What I find laughable in this whole thing, and I don't recall anyone bringing it up, but I could win 8k on a craps table and there would be no paperwork what so ever.

Though it has not been mentioned explicitly, people do feel that there will be much more activity at the table games if this proposal comes into effect.

There is never any tax for blackjack or roulette, since table games require W2G for a win that is 300 folds the original wager. The Fire Bet probably is the craps bet that might trigger a W2G.

Many people use their welfare and social security benefits to play at the casino, if they get a reported income through a W2G, they fear that their benefits will get cut or part of the winnings will get claimed.

The cash cow for casinos are slots, if more people avoid them for tax purposes, it would impact the casinos more than people would think.

[olds442jetaway]

[QUOTE=Tedlark]

  What I find laughable in this whole thing, and I don't recall anyone bringing it up, but I could win 8k on a craps table and there would be no paperwork what so ever.
  good point. of course, the government is going to where the money is, where they can get the most. and, that is with those who play the machines. i am sure some hate when i bring up stats like this, but when 60% of all tax filers, pay just 3% of all federal income tax and folks keep asking/demanding more stuff from the government, this is what happens. the money has to come from
someplace and additional fees/taxes on smoking/drinking/gambling has become socially acceptible.  i will assure one that some of the very same folks who will fault raising gambling taxes, will have no problem asking the government to provide more stuff to more people. [/QUOTE]

     Speaking of which, I wonder how many of the phones we all saw on the news raised up in the air taking pics and video in Baltimore were Obamaphones.

[spxChrome]

If I have to get a w2g on a win of $600 or more I would quit playing. I have a feeling it will happened you can see it on the newer penny slots already. "Progressive Jackpot pays before $600". How many times can they tax money in this country before they have it all. Its like playing Texas Hold'em where they rake the pot if the same people play long enough the rake will have all the money that just bounces around between the players.