Congressional leaders such as Rep. Dina Titus (D-NV) who have been asking the IRS to raise the tax reporting threshold on slot machine jackpots for nearly a decade received some welcome backing from an unusual source — the agency’s advisory council.
In a decision last November, the IRS Advisory Council said the threshold figure should be raised from $1,200 to $5,800 — $800 more than what members of the Congressional Gaming Caucus have been seeking.
A spokesman for Titus, who first requested the IRS commissioner raise the slot jackpot reporting threshold in 2015, said the office was aware of the news but wanted to wait for the official announcement from the advisory council.
The $1,200 jackpot threshold was established in 1977, when Nevada was the only state with legalized gambling. There are now 44 states with either commercial casinos or casinos operated by Indian tribes.
Exceeding that threshold is commonplace nowadays on slot floors, and proponents of the change said the current figure triggers a shutdown of the slot machine until IRS paperwork requirements, including filling out a W-2G tax form, are fulfilled.