If the IRS has its way, casinos may face new tax laws in the near future. The agency is planning to implement new laws that would have casinos declare in their tax forms every payout from slot machines that is $600 or more.
The implications of new law
The American Gaming Association is fighting back to not let the new tax law become a reality. For now the formation of the new law is only hinted at and nothing is finalized yet. But IRS is keen to see it implemented for all casinos. As of now only slot payouts in the range of $1200 or more have to be declared for tax purposes.
The casino lobby is fighting hard to not let the new suggested law become absolute. According to them, filing for smaller payouts would only result in losses for them. When the jackpots are won, the slot machines close down while the information is gathered for tax purposes. During this period the slot machine is actually not making any money for the casino. When the machine is closed for smaller payouts, it would mean more loss of profits per slot machine. The casino lobby is also citing cost of additional paperwork as extra business cost.
The IRS perspective
The IRS is seeking public opinion on the matter and the comments can be registered till 2nd June 2015. The IRS view is that it is now far easier to report winnings due to technology and casinos can really declare smaller winnings also with ease. They are not of the viewpoint that it would register in big business loss as declared by the casino association.
But in reality declaring smaller payouts is not only a hassle for casinos but also results in business loss. Casino owners have to now wait and see what the result of this IRS suggestion.
The post New Tax Laws for Casinos Maybe Underway appeared first on Casino Jones.
