IRS irks casinos with pitch to cut jackpot tax threshold

The IRS says a $600 slot machine or bingo jackpot might get its attention in the future, and the prospect has riled gamblers and the casino industry. The agency requires reporting on a single jackpot or win that’s $1,200 or more for federal income tax purposes. But it’s floating the possibility of cutting that threshold in half.

A reportable keno victory also could be lowered. The threshold for that game is now $1,500.

The IRS hasn’t proposed lowering the tax threshold yet, but it suggested it might in the future and asked for public comment. As of Tuesday, the agency received more than 3,000 comments, with many opposed to the change.

The limits were established in 1977. The American Gaming Association, which represents casinos and device manufacturers, is against the changes. It has said if the threshold is modified at all, it should be raised to $5,000 to adjust for inflation.

The Associated Press

This story was originally published June 2, 2015 at 5:55 PM with the headline "IRS irks casinos with pitch to cut jackpot tax threshold."