IRSAC Shows Support for US Slot Jackpot Tax Report Change

Summary:

• The tax threshold would go from $1,200 to $5,000 for reporting.
• Two Representatives are behind the Shifting Limits on Thresholds Act.
• The IRSAC has suggested a higher threshold of $5,800.

The Internal Revenue Service Advisory Council (IRSAC) not only supports the Shifting Limits on Thresholds (SLOT) Act introduced by United States Representatives Guy Reschenthaler and Dina Titus but also aligns with its objectives.

This endorsement from a respected body adds weight to the two-year effort to elevate the tax reporting threshold for slot game wins from $1,200 to $5,000, reassuring taxpayers about the legitimacy and potential success of the proposed changes.

Let’s Raise the Reporting Total

The IRSAC agrees with the change and recommends that the threshold be moved to $5,800. The group added the small increase to account for inflation. The change also has the support of the gaming industry, so we will likely see SLOT come to fruition.

Lawmakers are now pushing the IRS Commissioner Danny Werfel to assist in the change. The Representatives asked Werfel to take the IRSAC’s recommendation and use his authority to raise the threshold and consider periodic increases based on inflation.

With a bipartisan group of 24 members of Congress rallying behind the SLOT Act, the push to update the tax reporting threshold for slot game wins transcends political divides. This collective backing underscores a shared commitment to modernizing an outdated standard, fostering a feeling of unity and collective progress among readers who are affected by this issue.

Updating the Current Threshold

Established in 1977, the $1,200 threshold for slot jackpot win reporting is a relic of a bygone era when slot gaming was confined to Nevada. With the expansion to over 40 states and the evolution of the gambling market, emphasizing this historical context helps readers grasp the pressing need for modernization, reflecting today’s vastly different economic landscape.

Titus has been working on increasing the threshold for quite some time, first introducing a request in 2015. Current rates cause slot machines to shut down until the IRS paperwork requirements are completed. This includes filling out a W-2G form.

At that time, Titus was told that a bill needed to be introduced to change the threshold legally. Today, Titus says that the legal change is not needed via legislation due to the decision by the advisory council to update the total to $5,800.

Titus feels that IRS Commissioner Danny Werful should follow the ruling and accept the change with the regulatory process. This way, there is no need to pass a bill, and the changes can be implemented quickly. It is still being determined what the Commissioner will do, so we will have to wait and see if he agrees with the regulatory change or insists that legislation move forward.