Tax Liability on Prizes
The Internal Revenue Service (IRS) Code requires a W-2G for each person that is paid out more than $5,000 in net tournament winnings (winnings reduced by the amount of the buy-in). Each winner must present two forms of I.D. Acceptable forms of I.D. are a valid driver’s license, social security card or voter’s registration card. An IRS form W9 must be completed for all players who win. Any player unable to provide their social security number or TIN will be subject to a 28% back up with holding on the full amount of the tournament winnings. If the winner does not have proper I.E. payout cannot be made until valid I.D. is obtained. When tournament winnings are made in non-cash form, such as jewelry or home electronics, the items actual cost is used to calculate winnings. Amounts paid in cash will not exceed $5,000; the balance will be paid in a check. Net winnings of $5,000 or less are not subject to reporting. All liability for payment of any taxes associated with any prize shall be the responsibility of the winner. Neither The Ocala Poker & Jai-Alai nor its affiliates are in any way responsible for any tax liability associated with the receipt of any prizes for which it provides goods or services associated with tournament events.