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Copyright © 2007 Part Time Poker
News
HEADLINE: IRS: Poker
tournament winnings now subject to automatic withholding
Body:
If you take home more than a $5,000 profit from a live poker
tournament, expect to take home a little less in 2008 than
you might have this year. That’s because the IRS is now
requiring US casinos to withhold 25% of winnings over $5,000 for
anticipated tax payments.
The $5,000 rule applies to your profit, not your win - so if
you entered a tournament
with a buy in of 10k and cashed for 12k, you’d be fine with
a net win of $2,000. Enter for $30 and win $5,030, however, and
you’ll be exiting 25% lighter.
The ruling formally goes into effect on March 4th, 2008. The
decision stems from a court ruling that poker
tournaments should be subject to automatic withholding under
Code Sec. 3402(q)(3)(C)(i), which requires that payers withhold
25 percent on proceeds of more than $5,000 from a sweepstakes,
wagering pool or lottery (other than a state-conducted lottery,
which is covered by another withholding rule).
Full
Tilt Poker Referral Code
Related: See
USA Poker Online
Article
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