When Does Tax Withholding Apply?

When Does Tax Withholding Apply?

CCCD are required to file a Form W-2G with the winner and the U.S. Internal Revenue Service if a single slot jackpot or bingo jackpot of $1,200 is paid to a U.S. Citizen or Resident Alien. This 10310i84k does not apply to accumulated small jackpots under the $1,200 threshold which, combined, equal or exceed the reporting threshold.

If a winner fails to provide his/her U.S. social security number for filing, then we must physically withhold at a backup rate, on behalf of the I.R.S., and forward funds accordingly.

We are also required to file a form W-2G AND physically withhold taxes at a regular rate whenever a table game payout of 300 to 1 or higher against a wager is made. This affects poker royal flushes and possibly straight flushes at the specialty poker tables such as Caribbean Stud Poker, Diamond Edition Caribbean Stud Poker, Let It Ride and Three Card Poker in addition to some payments on such as Wheel of Madness Blackjack. Again, if no social security number is provided by the winner, the regular rate for tax withholding will be substituted by the backup withholding rate.

Taxable Rates for 2006

Regular gambling withholding rate: 25% (twenty five percent)

Backup withholding rate : 28% (twenty eight percent)

To Whom Does Tax Withholding Apply?

All USC's (United States Citizen)

All ARC's (Resident Alien)

When do ships having the Citrix System not provide the W-2G Onboard?

In all instances of our physically withholding funds from a payment, as opposed to simply filing form W-2G, tax paperwork will be completed shore side and provided to the I.R.S. along with the deposit. This is to say that on all occasions of withholding attributed to table games and also occasions of backup withholding attributed to both tables and slot jackpots, form W-2G will be completed shore side; and onboard, the Guest will simply receive documentation of the front money deposit collected on behalf of the I.R.S.

How Soon Must a Tax Deposit Reach The I.R.S.?

Within 15 business days of the jackpot win. For this reason, in instances where the shore side office file on behalf of the ship, tax withholding information must be forwarded shore side within 24 hours.