Gambling & Indian Casinos Tax Attorney – W-2G, Indian tribe and Indian casino tax reporting, state tax and casino corporate tax plus online casino tax help

Taxation of Gambling Winnings and Casinos

Gambling Winnings

The IRS is unkind to winners and it doesn't like losers either. The Federal government taxes gambling winnings at the highest rates allowed, as do many states. So, if you play big, they want you to pay big. Here are the rules for tax reports and withholdings on gambling winnings from Indian casinos and U.S. casinos:

1. Slot machines and bingo - payouts of $1,200 or more are reported to the IRS, but there is no withholding taken out.

2. Keno - similar to slots, but the amount won must be at least $1,500 (25% withholding if over $5,000).

3. State lotteries and sweepstakes - withholding is taken out of all winnings of more that $5,000.

4. Pari-mutual pools, including horse and dog races - subject to withholding, but only if the winnings are both more than $5,000 and at least 300 times as large as the amount bet.

The Law Offices of Chris Rusch can help. It is possible for a gambler to reduce or eliminate winnings by deducting both losses on his return. A recent Supreme Court case held that a player who treats his gambling like a full-time job is entitled to all of the tax breaks of any other trade or business, include deducting travel, education and other expenses to the extent of losses.

There are a number of complex rules on documenting losses and I am experienced in audits and disputes cased by Form W-2G or Form 5754. If you are an avid gambler and need help with a gambling related tax problem, call my direct line at (619) 557-0587.

U.S. & Indian Nation Casinos

From Form W-2Gs and other reporting requirements, to the ever changing money laundering guidelines under the Bank Secrecy Act, Section 31, the demands on U.S. and Indian casinos are tremendous. In 2002 and 2003, there have been a number of important changes to the Internal Revenue Code and state tax law, such as Rev Proc 2003-14 (dealing with safe harbor rules for trusts owned by Indian tribes for the receipt of gambling income) and reporting guidelines of suspicious activity, related to Form 8362, Currency Transaction Report by Casino.

The Tax Law Offices of Chris Rusch can help casinos with these compliance issues, as well as income distributions, state tax, employment tax, disputes, and by providing a tax law research resource for your accounting department.

For the basic reporting requirements on U.S. Indian casinos, see the IRS website at: http://www.irs.gov/pub/irs-pdf/p3908.pdf.

Click here to schedule a confidential appointment by email or call my direct line at (619) 557-0587. I will personally answer your call and determine what steps are needed to resolve your tax problems.