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Tax question

Started by brokerny, March 19, 2017, 01:56:35 AM

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brokerny

I did some reading online that says casinos don't report to the IRS and that each individual goes by the honor system. If that's the case, how important are the W2G statements by the casino? What if someone hits a nice size jackpot and the W2G statements reads something like $21,000 but that person doesn't disclose it on his income taxes? What are the chances the IRS will find out? Anyone ever file gambling profits on their taxes or even their big jackpots?

alrelax

100%, No 110%wrong!  You better file whatever you are W-2G'd for my friend!  No matter if its, a $1,400 or a $10,000 or a $50,000 jackpot. 

The IRS will get each and every W2G 1,000%, like a wife check her cheating husband's cell phone and bank cards, every single on is transmitted to the IRS without failure.

Several years ago, I believe it was 2013 I had 3 W2G's from a casino for slot machine wins.  My wife was playing HL B.J. and on a heater, I was watching her and every 15 min's or so for the course of a couple hours, she was giving me about $5k to $15k in chips to go tot he cashier and cash out.  Well the cashier for their HL room in is a second HL room next to the table games HL.  At the HL room's cashier cage one is surrounded by the HL slot machines.  So every time I cashed out the chips I would take one or two hundred dollar bills and insert them in a machine and play max lines.  I had I think it was the 3 jackpots of $1,200.00, $1,600.00 and one for $1,400.00 I think.  The following year I did not include those in 2014 for 2013.  All great.  No problems, screw them, it is the honor system.  Yeah right, wishful thinking.  Later that year in 2014 I get a letter from the IRS telling me, 'hey dude-looks like you forgot us, straighten it out or we can lien you and collect it, okay0thanks, bye' type of letter.

So hard headed me, filed that letter in the round file, the garbage can.  I file my taxes for the next year and of course left those off once again.  Now at refund time, the IRS took what I owed them 100% by the W2G plus interest and fees. 

Case closed, paid plus other charges. 

So do what you want, the IRS already has each and every W2G, believe it or not.
My Blog within BetSelection Board: https://betselection.cc/index.php?board=250.0

Played well over 36,951 shoes of baccarat since I started playing at B&M USA casinos.

THE PURPOSE OF GAMING IS TO WIN!

"Don't say it's a winning hand until you are getting paid for it".

Played numerous properties in Las Vegas, Reno, Southern California, Atlantic City, Connecticut, South Florida, The South/Southeast as well as most areas of The Midwest.

Baccarat, actually a mixture of Watergate, attacking the Gotti Family and the famous ear biting Tyson fight leading to disqualification and a near riot.  Bac has all that & more.
 
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brokerny

damn, so what i read is complete garbage. if you know you're gonna win, guess its better to not give your players card.

alrelax

W2G is ONLY on slot machine hand pays, that is all.  It is not on chip redemption, etc.  As far as wins, you report what you feel you should report with loses and expenses, etc.  There are no W2G or anything transmitted to the IRS for chip redemption.  CTR's and STR's have nothing to do with the IRS, etc. 
My Blog within BetSelection Board: https://betselection.cc/index.php?board=250.0

Played well over 36,951 shoes of baccarat since I started playing at B&M USA casinos.

THE PURPOSE OF GAMING IS TO WIN!

"Don't say it's a winning hand until you are getting paid for it".

Played numerous properties in Las Vegas, Reno, Southern California, Atlantic City, Connecticut, South Florida, The South/Southeast as well as most areas of The Midwest.

Baccarat, actually a mixture of Watergate, attacking the Gotti Family and the famous ear biting Tyson fight leading to disqualification and a near riot.  Bac has all that & more.
 
Administrator & Forum Board Owner  of  BetSelection.cc
EMAIL: Betselectionboard@Gmail.Com

alrelax

Quote from: brokerny on March 19, 2017, 04:00:27 AM
damn, so what i read is complete garbage. if you know you're gonna win, guess its better to not give your players card.

Players card has nothing to do with W2G's.  THey will ID you 100% for a hand pay, they have to or you will not get paid.

As far as a CTR for over 10k you will not be able to cash chips for a single or cumulative transactions of the $10k if you do not have ID on file or you file it.  If you are already CTR'd with a players card you are known, then there is no problem.  If you are not getting a players card and CTR'ing yourself, you will most likely have a lower cash out limit, usually around $3k to $5k limit which just about all USA casinos have been force to implement during the past 5 or so years.

I have a feeling you are confusing W2G's with CTR's and STR's.  I hope you understand now.   
My Blog within BetSelection Board: https://betselection.cc/index.php?board=250.0

Played well over 36,951 shoes of baccarat since I started playing at B&M USA casinos.

THE PURPOSE OF GAMING IS TO WIN!

"Don't say it's a winning hand until you are getting paid for it".

Played numerous properties in Las Vegas, Reno, Southern California, Atlantic City, Connecticut, South Florida, The South/Southeast as well as most areas of The Midwest.

Baccarat, actually a mixture of Watergate, attacking the Gotti Family and the famous ear biting Tyson fight leading to disqualification and a near riot.  Bac has all that & more.
 
Administrator & Forum Board Owner  of  BetSelection.cc
EMAIL: Betselectionboard@Gmail.Com

brokerny

Thanks Alrelax, I was a bit confused. So table games have no effect on W2G and in fact works on an honor system. If someone doesn't play slots or electronic games, than they arent under the radar of the IRS. Good to know.

Patience777

Some table games have jackpots.  I saw a guy hit a straight flush one day in Pai Gow Poker.
The Pit Boss was over there immediately with the tax form.
Either you sign the form or you don't get paid.
Then if you do sign the tax form, then the Feds will be monitoring you in your casino play for the rest of your life.

I don't play any game in a casino where there are possible tax forms involved with you winning.
Because you are taking a 25% capital gains hit (aprox.) thru Uncle Sam if you do win.
Most casinos what is it? Any jackpot over $1,200 you pay federal tax on! Bull Sh*t not me!

IMO Slot machines are for suckers anyway.




alrelax

They don't monitor you, you simply get a W2G filed, declare it on your taxes.  Simple. 

Any hand paid jackpots in cash, they cannot or should not do it for chips, chips are not cash.  That is why they have to do it on slots, they pay in cash, you won and you are receiving cash.  Otherwise they would all have to do it for Fortune 7's, etc., if that was the case. 
My Blog within BetSelection Board: https://betselection.cc/index.php?board=250.0

Played well over 36,951 shoes of baccarat since I started playing at B&M USA casinos.

THE PURPOSE OF GAMING IS TO WIN!

"Don't say it's a winning hand until you are getting paid for it".

Played numerous properties in Las Vegas, Reno, Southern California, Atlantic City, Connecticut, South Florida, The South/Southeast as well as most areas of The Midwest.

Baccarat, actually a mixture of Watergate, attacking the Gotti Family and the famous ear biting Tyson fight leading to disqualification and a near riot.  Bac has all that & more.
 
Administrator & Forum Board Owner  of  BetSelection.cc
EMAIL: Betselectionboard@Gmail.Com

alrelax

I was speaking with my daughter whom was in charge of a major casino chain with 'Rules and Compliance' on their state and federal end of compliance.  She said, no W2G's whatsoever for any chip payout, it has to be cash.  That is because cash is a payday-a payout, same as salary when you work.

Anything else, including a check from a casino for a cash out of chips, is not W2G'able, etc.   
My Blog within BetSelection Board: https://betselection.cc/index.php?board=250.0

Played well over 36,951 shoes of baccarat since I started playing at B&M USA casinos.

THE PURPOSE OF GAMING IS TO WIN!

"Don't say it's a winning hand until you are getting paid for it".

Played numerous properties in Las Vegas, Reno, Southern California, Atlantic City, Connecticut, South Florida, The South/Southeast as well as most areas of The Midwest.

Baccarat, actually a mixture of Watergate, attacking the Gotti Family and the famous ear biting Tyson fight leading to disqualification and a near riot.  Bac has all that & more.
 
Administrator & Forum Board Owner  of  BetSelection.cc
EMAIL: Betselectionboard@Gmail.Com

alrelax

Best to read for yourself. 

1)  http://grochowski.casinocitytimes.com/article/timely-tax-advice-for-gamblers-39612

2)  https://www.irs.gov/taxtopics/tc419.html

IMO and IMO only, if you file anything else besides a W2G or say you won a car or something tangible that has a paper trail, etc., you are a fool and asking to open a can of proverbial worms that would never ever be talked about.

One thing to remember with the IRS, and I have owned many businesses and have many many life experiences with winnings, gifts, business cash-checks-tax returns, cash outs, etc.  You will always receive a letter from the boys at the IRS saying something along the lines of, "hey Dude--you forgot about us with so and so, please send us so and so and we will not proceed".  Then there is always the choice to go to an audit, tax court or US District Court, etc.  Their are no criminal charges for forgetting something we are not talking about a Mr. Tran tax cheat situation with millions and millions of dollars or a Phil Ivy, etc., etc.  Really, seriously!
My Blog within BetSelection Board: https://betselection.cc/index.php?board=250.0

Played well over 36,951 shoes of baccarat since I started playing at B&M USA casinos.

THE PURPOSE OF GAMING IS TO WIN!

"Don't say it's a winning hand until you are getting paid for it".

Played numerous properties in Las Vegas, Reno, Southern California, Atlantic City, Connecticut, South Florida, The South/Southeast as well as most areas of The Midwest.

Baccarat, actually a mixture of Watergate, attacking the Gotti Family and the famous ear biting Tyson fight leading to disqualification and a near riot.  Bac has all that & more.
 
Administrator & Forum Board Owner  of  BetSelection.cc
EMAIL: Betselectionboard@Gmail.Com

alrelax

One final thing here, CTR's have nothing to do with winnings.  In fact, the majority of CTR's are for losing buy-in's anyways.  A CTR does not substantiate you won money, it is only to document your cashing out or buying, both CASH TRANSACTIONS of cash in the amount of $10,000.00 or more.

I much rather have a CTR any day of the week, then have a STR for not providing ID and being documented as skirting and attempting to avoid the documentation of a player with his ID that he refuses to provide and/or providing the Department of Justice and high state law enforcement agencies with the proof that you have been knowingly attempting to circumvent the CTR rules and regulations. 
My Blog within BetSelection Board: https://betselection.cc/index.php?board=250.0

Played well over 36,951 shoes of baccarat since I started playing at B&M USA casinos.

THE PURPOSE OF GAMING IS TO WIN!

"Don't say it's a winning hand until you are getting paid for it".

Played numerous properties in Las Vegas, Reno, Southern California, Atlantic City, Connecticut, South Florida, The South/Southeast as well as most areas of The Midwest.

Baccarat, actually a mixture of Watergate, attacking the Gotti Family and the famous ear biting Tyson fight leading to disqualification and a near riot.  Bac has all that & more.
 
Administrator & Forum Board Owner  of  BetSelection.cc
EMAIL: Betselectionboard@Gmail.Com