Westmoreland Review

Chief Deputy Whip Guy Reschenthaler (R-PA) and Representative Dina Titus (D-NV), co-chairs of the bipartisan Congressional Gaming Caucus, have written a letter to Internal Revenue Service (IRS) Commissioner Danny Werfel, expressing their support for the IRS Advisory Council's (IRSAC) recent recommendation to raise the reporting threshold for slot machine jackpot winnings.

In their letter, Reschenthaler and Titus urged Commissioner Werfel to exercise his authority and increase the threshold for slot machine jackpot winnings to $5,000, taking into consideration periodic increases based on inflation. They believe that this action would align with the IRS's strategic use of data to improve tax administration and modernize tax reporting for their constituents.

Currently, under 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 the significant increase in the number of W-2G forms filed each year. This outdated standard has created compliance burdens for taxpayers and increased operating costs for casinos across the country.

Bill Miller, the President and CEO of the American Gaming Association (AGA), applauds the efforts of Representatives Reschenthaler and Titus, along with other Congressional leaders, to modernize this long-outdated policy. He states, "The antiquated slot tax threshold creates unnecessary burdens for consumers, casino operators, and the IRS." The AGA fully supports the call to raise the threshold and urges Commissioner Werfel to take action.

Last year, Reschenthaler and Titus introduced the Shifting Limits on Thresholds (SLOT) Act, a bipartisan legislation that aims to increase the outdated tax threshold for slot winnings from $1,200 to $5,000. This legislation is part of their ongoing efforts to address the issue and provide relief to taxpayers and the gaming industry.

The Congressional Gaming Caucus, which Reschenthaler and Titus co-chair, is composed of a diverse group of Members of Congress from across the country. It serves as a platform for discussing federal policy issues related to the U.S. gaming industry and educating congressional colleagues on relevant regulatory and legislative matters.

The full letter can be read here.