In response to efforts spearheaded by the NTRA, the U.S. Department of the Treasury and Internal Revenue Service (IRS) are considering changes to reporting and withholding requirements that would dramatically change the tax structure for pari-mutuel winnings. We applaud the NTRA’s efforts on behalf of our industry and urge you to show your support by submitting a comment to the Treasury.
The changes would positively impact all levels of horseplayers, regardless of whether a person wagers $1, $100 or $1,000. For example, the amount wagered by a Pick Six player who hits with one of 140 combinations on a $1-minimum wager would be $140, which is the total amount bet into the Pick Six pool. Currently the “amount wagered” is calculated using only the $1 bet on the single winning combination. By understating the amount wagered in this manner, the IRS is imposing significant additional reporting and withholding obligations on horseplayers while creating unnecessary paperwork for the IRS.
The proposal also aims to lessen racing’s competitive disadvantage against other forms of gaming that are not subject to such aggressive tax treatment related to reporting and withholding. According to Daily Racing Form, redefining the way the IRS calculates the amount wagered to include all money bet by an individual into a single pool would eliminate a high percentage of the reporting and withholding tickets and could increase pari-mutuel wagering by as much as $1 billion in year one alone.
It takes less than two minutes to submit a comment, and you will find an easy-to-use message submission page at www.NTRA.com/IRScomment. The deadline to submit a comment is Tuesday, June 2. Please act now.
Thank you in advance for supporting this important initiative.
Best regards,
Joe Morris, President
TOC Online