The Internal Revenue Service (IRS) released its 2006-2007 Priority Guidance Plan Aug. 8, which includes a project to review revenue procedures regarding withholding rules that apply to the winners' prizes at poker tournaments.
"Guidance provides a real service to taxpayers by clarifying how the IRS interprets the law," said IRS Commissioner Mark Everson. "The results of the new plan, published over the next 12 months, will help taxpayers comply with the law."
The withholding rules for poker tournaments is one of 264 tax projects outlined in the plan that the IRS will complete through the next 12 months. According to a joint statement from the IRS and U.S. Department of Treasury, the list of projects reflects what people have indicated they would like the IRS to focus on.
"We recognize the importance of public input to formulate a Priority Guidance Plan that focuses resources on guidance items that are most important to taxpayers and tax administration," said Everson, Donald Korb, IRS chief counsel, and Eric Solomon, Department of Treasury deputy assistant secretary, in the statement.
With the rise in poker popularity and the many tournaments popping up in casinos across the nation, it's no surprise tax laws involving poker tournament winnings have become a priority. Clarifying the regulation and providing better guidance for poker players could ultimately provide more revenue for the IRS.