A while earlier, my mother got a letter from the Internal Revenue Service mentioning she owed tax obligation (plus fines and also the rate of interest) on her jackpot earnings at a Delaware online casino in a prior year. They included a duplicate of the W2G kind that she (according to them) had ignored to claim on her Federal tax return. Mommy had not been to that Delaware casino site because year because there are now sufficient casinos in our state where you can play and lose your loan.
My mommy did not know where to start to obtain this fixed, so she called for my assistance. As an accountant, my very first idea was to see a copy of the receipt the champion had signed when she collected her jackpot. Mom called and asked the accountancy division to fax a copy of the receipt to me.
It was not my mommy’s signature on the invoice. After a second call to the online casino, we discovered several aspects of exactly how the bookkeeping is dealt with at casinos.
Ends up there is an additional individual with the same name as my mom, but a different address and also Social Protection number. This person and even my mom had both enrolled in the casino site’s ‘club’ card, and also I suppose they each had to supply their Social Security number. This is the card you take into the vending machine you’re playing that is meant to track your payouts and also offer points free of charge meals, etc
- Nonetheless, it appears like the online casino had not troubled to validate the right SSN when they submitted the documents for the winner, and as a result, filed an incorrect W2G to the Irs for that pot. Meanwhile, my mommy was being billed for the tax on the jackpots, plus fines and passion, while the real champion was not, as well as the clock kept ticking on the rate of interest up until this was resolved.
- An additional phone call to the casino site was a little irritating, as the accountancy department had no concept how to fix the trouble. (As an accounting professional, I recognized they would have to send out in a dealt with W2G under my mother’s SSN specifying no income, along with a new W2G mentioning the profits for the winner under the proper SSN.) We called the IRS, and also they confirmed the need for the gambling establishment to file these two kinds, and afterwards, we needed to call the casino to clarify just how they required to do their work to fix this.
- Weeks later on, Mom received a fixed W2G from the casino site as well as I wrote a letter to IRS discussing the situation and also requested the charges and passion be turned around. At some point, the case with the Internal Revenue Service was fixed, yet not without a great deal of aggravation and also time. The casino did not seem even fazed with the error – they did apologize, but we will never go there once more. I had Mom call them to terminate her ‘club’ card, so this would not occur again-to her, a minimum of.
- The lesson learned below is … if you do take pleasure in playing the slots or table video games at a casino, do be sure to keep an eye on your profits.