The proposed legislation would also include a mechanism to adjust the threshold to account for inflation in the future. ”Increasing the slot tax threshold to account for inflation is a long overdue change that will alleviate unnecessary administrative burdens on casino operators, their customers and an understaffed and overwhelmed IRS,” AGA President and CEO Bill Miller said in a release on Thursday. The American Gaming Association, the trade group that represents the gaming industry, has been advocating for what it characterizes as a common-sense inflation-adjusted change in the tax law. The proposed new legislation would amend the tax code and apply to payments made after Dec. When adjusted for inflation, a $1,200 jackpot in 1977 would be equivalent to more than $5,000 today. That has created ever increasing occasions when casinos must issue a W-2G to the customer and notify the Internal Revenue Service. That’s still a tidy sum but in the 45 years since then, with inflation creating upward pressure, jackpots of that size have become far more common. When the original threshold was set, a $1,200 jackpot was a sizable win for many gamblers. Mark Amodei (R-Nev.), Anthony Brown (D-Md.) and Steven Horsford (D-Nev.). Dina Titus (D-Nev.) and Guy Reschenthaler (R-Pa.). The bipartisan legislation was introduced by Congressional Gaming Caucus Co-Chairs Reps. The legislation introduced on Thursday would raise the threshold to $5,000. Currently, gambling operators are obligated to issue a W-2G on jackpots of $1,200, a threshold that was set in 1977. Winning bettors must pay taxes on online slots as well as jackpots at brick-and-mortar casinos. Congress that would raise the dollar threshold for when gambling operators are required to issue documentation on a slots jackpot. Legislation is being introduced in the U.S.
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