Great News for Poker Tournaments!

As I reported earlier, the IRS has revisited Revenue Procedure 2007-57, which would have required withholding on all poker tournament payouts of more than $5,000. I had been told by someone at the IRS that the IRS was going to try to put into place the Binion’s closing agreement ($600), which would have sent lots of paper to the IRS.

Apparently, the American Gaming Association has some good negotiators. This IRS Press Release states that reporting will be required on, “…tournament winnings of more than $5,000, usually on an IRS Form W-2G.”

So instead of more reporting and withholding, there will actually be no change in withholding and less reporting of winnings! Casinos that currently follow the Binion’s Closing Agreement will now only have to issue W-2Gs if a poker tournament winner receives more than $5,000 rather than $600.

The only caveat I’ll place on all this is that the IRS still must re-release the Revenue Procedure. But it really appears that this is very good news for both poker tournament organizers and for poker players.

News Story: Reuters

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