Some time back, my mom obtained a letter with the IRS stating she owed tax (additionally penalties and desire) on her jackpot winnings at a Delaware On line casino in a previous year. They provided a replica with the W2G type that she (according to them) had neglected to say on her Federal tax return. Mother experienced not been to that Delaware On line casino in that yr simply because you will discover now much more than enough casinos in our state where you can play and reduce your cash.
My mother didn’t know in which to start to get this settled, so she identified as for my assist. Being an accountant, my initial assumed was to check out a copy of the receipt the winner had signed when she gathered her jackpot. Mom referred to as and asked the accounting department to fax a replica in the receipt to me.
It Obviously was not my mother’s signature within the receipt. Following a 2nd connect with to your casino, we discovered various items regarding how the accounting is taken care of at casinos.
Turns out there is another human being dg Along with the same identify as my mother, but a different address and Social Protection number. This person and my mother experienced both signed up for the casino’s ‘club’ card, And that i suppose they Just about every experienced to produce their Social Security range. Here is the card you set into the slot device you’re participating in that is certainly purported to observe your winnings and supply details at no cost foods, and so forth.
Nonetheless, it looks like the casino experienced not bothered to confirm the correct SSN whenever they filled out the paperwork with the winner, and so filed an incorrect W2G to The interior Profits Services for that jackpot. Meanwhile, my mom was remaining billed to the tax on the winnings, as well as penalties and fascination, when the actual winner wasn’t, along with the clock retained ticking within the fascination until this was resolved.
An additional simply call to your On line casino was a little aggravating, given that the accounting Division had no idea how to resolve the trouble. (As an accountant, I realized they would need to send in the corrected W2G less than my mom’s SSN stating no money, in addition to a new W2G stating the earnings to the winner below the right SSN.) We called the IRS and they confirmed the necessity with the casino to file both of these varieties, then we needed to simply call the On line casino to elucidate how they required to do their task to appropriate this.