Reps. Reschenthaler, Titus urge IRS to raise reporting threshold for slot machine winnings

U.S. Reps. Guy Reschenthaler (R-PA) and Dina Titus (D-NV) expressed their support for a recent recommendation made by the Internal Revenue Service Advisory Council (IRSAC) on reporting slot machine winnings.

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The IRS Advisory Council recommends increasing the reporting threshold for slot machine jackpot winnings to $5,000, to account for inflation.

“We urge you to follow the IRSAC’s recommendation and exercise your authority to raise the threshold for slot machine jackpot winnings to $5,000 and to consider periodic increases to the threshold based on inflation. Taking this action will align with the IRS initiative to strategically use data to improve tax administration and modernize tax reporting for our constituents,” the lawmakers wrote in a letter to IRS Commissioner Danny Werfel.

Reschenthaler and Titus are co-chairs of the bipartisan Congressional Gaming Caucus,.

Under the current IRS policy, slot machine jackpot winnings of $1,200 or more require a W-2G tax form. However, this threshold has not been updated since 1977, despite a substantial increase in the number of W-2G forms filed each year.

Due to inflation, the lawmakers said this outdated standard has significantly increased compliance burdens on taxpayers and operating costs for casinos across the country.

Last year, Reschenthaler and Titus introduced the Shifting Limits on Thresholds (SLOT) Act, which would raise the tax threshold for slot winnings from $1,200 to $5,000. The IRSAC now supports this recommendation.

The proposed change has the support from the gaming industry.

“The antiquated slot tax threshold creates unnecessary burdens for consumers, casino operators and the IRS,” American Gaming Association (AGA) President and CEO Bill Miller said. “The AGA commends Representatives Reschenthaler and Titus and other Congressional leaders for their dedicated efforts to modernize this long-outdated policy and join them in urging Commissioner Werfel to raise the threshold.”