A new change in IRS law beginning March, 2008 will require all sponsors of poker tournaments in the US to report the payout winners for taxable income exceeding $5,000.
As of now, tournaments held before March 2008 are not susceptible to this new addition.
The tournament sponsors will not be required to withhold tax, but most likely a W-2G will be required for filing.
There hasn't been a lot of discussion yet as to how this will effect online poker tournaments but it seems that these will also be included under the umbrella, if possible. The language, as with most poker-related law, is still rather unclear.
This won't be new news for major winners in casino tournaments, as most required the filling out of the form anyway.
We should be on the lookout, though, for how this new change will affect future play. |
