If you were worrying about the tax implications of that big poker
tournament win you enjoyed in the United States, the U.S. Treasury
has a plan for you according to a report carried in Card Player magazine
this week.
The magazine discusses the August 15 publication of the U.S. Treasury's
2006-2007 Priority Guidance Plan, which includes a list of 264 tax
projects scheduled for implementation within the next 12 months. Four
final regulations listed within the tax administration section include
a project on revenue procedures regarding withholding rules applicable
to poker tournaments.
With a dramatic increase in high-buy-in events, record-breaking attendance,
and enormous prize pools, Card Player says that there’s a lot
of money changing hands. Televised tournaments have put poker in the
spotlight, and though all of these factors have elevated the sport
and encouraged growth, it has also made poker more conspicuous. It
was therefore only a matter of time before the IRS took notice.
With taxes from big prize pools and dozens of major tournaments across
the country, the IRS could put a dent in the national debt, and not
just with American winnings. Even non-Americans will find themselves
giving up a little more juice to stay in action, the magazine opines.
The good news is that the Treasury’s Priority Guidance Plan
could set the groundwork for other areas within the poker industry,
while once and for all granting the sport some legitimacy.
In either case, poker players won’t have to wait long for an
answer. “While the list usually grows to keep pace with
new IRS or taxpayer concerns, the number of projects scheduled to
receive attention this year is nothing out of the ordinary in terms
of volume,” says Treasury spokesman Sean Kevelighan.