The Internal Revenue Service and the Treasury Department have proposed new rules for withholding and reporting on gambling winnings from horseracing, dog races and jai alai pari-mutuel betting, and finalized regulations for reporting on bingo, keno and slot machine winnings.
The proposed regulations on pari-mutuel betting affect both payers and payees of gambling winnings subject to withholding under Section 3402(q) of the Tax Code. The 31-page document, entitled “Withholding on Payments of Certain Gambling Winnings,” resulted largely from the efforts of the National Thoroughbred Racing Association, accomplishing goals the NTRA initiated over two years ago, according to the association. The NTRA said it met with officials from the IRS and the Treasury Department. Horseplayers also visited Washington to lobby regulators. The effort also included grass roots campaigns and direct contact involving thousands of members of the horseracing industry, including bettors, along with involvement by members of Congress, governors and other elected officials.
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