Beware Casinos Gambling With Your Taxes

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Some time in the past, my mom acquired a letter from the IRS stating she owed tax (plus penalties and curiosity) on her jackpot winnings at a Delaware online casino in a previous 12 months. They included a duplicate of the W2G type that she (in keeping with them) beware casinos gambling had uncared for to assert on her Federal tax return. Mother had not been to that Delaware on line casino in that 12 months as a result of there at the moment are greater than sufficient casinos in our state the place you possibly can play and lose your cash.

My mom didn’t know the place to start to get this resolved beware casinos gambling, so she known as for my assist. As an accountant, my first thought was to see a duplicate of the receipt the winner had signed when she collected her jackpot. Mother known as and requested the accounting division to fax a duplicate of the receipt to me.


It clearly was not my mom’s signature on the receipt. After a second name to the on line casino, we discovered a number of issues about how the accounting is dealt with at casinos.

Seems there’s one other individual with the identical identify as my mom, however a special deal with and Social Safety quantity. This individual and my mom had each signed up for the online casino’s ‘membership’ card, and I suppose they every needed to provide their Social Safety quantity. That is the cardboard you place into the slot machine you are enjoying that’s supposed to trace your winnings and supply factors at no cost meals beware casinos gambling, and many others.

Nonetheless, it seems just like the on line casino had not bothered to confirm the right SSN after they crammed out the paperwork for the winner, and due to this fact filed an incorrect W2G to the Inside Income Service for that jackpot. In the meantime, my mom was being billed for beware casinos gambling tax on the winnings, plus penalties and curiosity, whereas the true winner was not, and the clock stored ticking on the curiosity till this was resolved.

One other name to the on line casino was just a little irritating, because the accounting division had no thought how one can remedy the issue. (As an accountant, I knew they must ship in a corrected W2G below my mom’s SSN stating no revenue, together with a brand new W2G stating the earnings beware casinos gamblingĀ for the winner below the proper SSN.) We known as the IRS and so they confirmed the necessity for the on line casino to file these two kinds, after which we needed to name the on line casino to clarify how they wanted to do their job to appropriate this.

Weeks later, Mother acquired a corrected W2G from the on line casino and I wrote a letter to IRS explaining the scenario and requested for the penalties and curiosity be reversed beware casinos gambling. Finally the case with the IRS was resolved, however not with out a whole lot of frustration and time. The on line casino didn’t appear too fazed with the error – they did apologize, however we are going to by no means go there once more. I had Mother name them to cancel her ‘membership’ card so this would not occur once more-to her, at the very least.

The lesson discovered right here is… if you happen to do get pleasure from enjoying the slots or desk video games at a on line casino, do you’ll want to hold monitor of your winnings. If it is accessible to you, ask the on line casino for an inventory of your 12 months-to-date winnings on the finish beware casinos gamblingĀ of December to verify it agrees together with your precise figures, and query something that appears unsuitable. I’m certain there are jackpot winners who wind up paying tax on cash they did not win.

Do not let the casinos gamble together with your taxes!

October 10, 2015: posted in Top Online Casino News No Comments

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