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Did your final hand contain a full house, a three of a kind or were you bluffing? No matter how you won, all poker tournament winnings must be reported on your federal income tax return.


The IRS has issued new regulations regarding the reporting of winnings from poker tournaments to both the winners and to the IRS. The new regulation goes into effect March 4, 2008 and is designed to clear up confusion about the tax reporting requirement regarding poker tournament winnings.


The new regulation will require that all casinos and tournament sponsors report tournament winnings of more than $5,000, usually on Form W-2G. In order for tournament sponsors to comply, players must provide their Federal Identification number (usually their Social Security number) to the sponsor of the tournament. If the winner fails to provide their Federal Identification number, the tournament sponsor must withhold Federal Income Tax at the rate of 28 percent.


It is important to remember that all tournament winnings – regardless of whether you received a W-2G – must be reported on your federal income tax return. If you have any questions, please contact your Rea & Associates advisor.


-by Lisa Beamer, CPA (New Philadelphia office)


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We take great care in the preparation of our articles and announcements. We also have a process of reviewing articles when major changes take place. The business, legal and tax climate is constantly changing especially when reviewed on an industry basis.

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