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ITHA/NTRA Needs Your Help to Modernize Pari-Mutuel Tax Withholding

Legislative & News Update for Illinois Horsemen
From the Illinois Thoroughbred Horsemen's Association

May 27, 2015
ITHA is proud to represent horsemen at Arlington Park and Hawthorne Racecourse.
 
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Racing Horses

Modernizing Pari-Mutuel Tax Withholding

Will Be Good for Horseplayers and

the Entire Racing Industry

Changes Will Ensure Both Withholding and Reporting

of Winnings Accurately and Fairly Reflect

the Realities of Wagering Today

Mike Campbell Profile
Mike Campbell, ITHA President

Dear Fellow Horsemen:

 

In response to efforts spearheaded by the NTRA, the United States Department of the Treasury and Internal Revenue Service are considering changes to reporting and withholding requirements related to pari-mutuel winnings.

 

The changes would positively impact all levels of horseplayers, regardless of whether a person wagers $1, $100 or $1,000. For example, the amount wagered by a Pick Six player who hits with one of 140 combinations on a $1-minimum wager would be $140, which is the total amount bet into the Pick Six pool. Currently the "amount wagered" is calculated using only the $1 bet on the single winning combination. By understating the amount wagered in this manner, the IRS is imposing significant additional reporting and withholding obligations on horseplayers while creating unnecessary paperwork for the IRS.

 

A clarification would directly benefit pari-mutuel customers by reducing burdensome tax obligations. The proposal also aims to lessen racing's competitive disadvantage against other forms of gaming that are not subject to such aggressive tax treatment related to reporting and withholding. According to Daily Racing Form, redefining the way the IRS calculates the amount wagered to include all money bet by an individual into a single pool would eliminate a high percentage of the reporting and withholding tickets and could increase pari-mutuel wagering by as much as 10% in year one alone.

 

An easy-to-use, pre-populated message submission page (that can be edited) has been established at www.NTRA.com/IRScomment for individuals to submit a comment directly to Treasury.

 

The deadline to submit a comment is Tuesday, June 2. Please act now by clicking here.

 

Thank you in advance for supporting this important initiative.

 

As always, I'm proud to serve the finest horsemen I know.

 

Sincerely,

Mike Campbell Signature

Mike Campbell

 

President

 

Illinois Thoroughbred Horsemen's Association
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