LEXINGTON, Ky. (Wednesday, May 6, 2015) – Two prominent congressmen, Rep. John Yarmuth (D-KY) and Rep. Charles Boustany (R-LA), have submitted a letter to the U.S. Department of Treasury reinforcing their support for amending Treasury regulations regarding withholding and reporting of pari-mutuel winnings. The letter, filed late last week, highlighted the economic impact of Thoroughbred racing in advance of the Kentucky Derby, horseracing’s biggest event, which generated a record $194.3 million in wagering.
“Unfortunately, the rules which regulate the tax treatment of these wagers were first put in place in the 1970s and do not reflect changes in betting over the past four decades,” the letter says.
Yarmuth and Boustany go on to endorse the public comments submitted last month by the National Thoroughbred Racing Association (NTRA) and urge the Treasury Department to review and consider those comments as the process moves forward. Last June, Yarmuth and Boustany were joined by a bipartisan group of 15 other congressmen when they sent a letter to the Secretary of the U.S. Treasury urging tax modernization of pari-mutuel regulations relating to pari-mutuel withholding and reporting.
“The entire horse racing industry is united and in agreement that these proposed changes will benefit all participants in the sport, including horseplayers, as well as federal and state governments,” said NTRA President and CEO Alex Waldrop. “We thank Rep. Yarmuth and Rep. Boustany for their continued leadership on this issue. We urge all horse racing organizations, industry stakeholders and horseplayers to make their voices heard before the public comment period ends June 2.”
The NTRA has created an easy-to-use form that makes it easy for the public to submit an e-mail directly to the appropriate IRS and U.S. Treasury officials at www.ntra.com/IRScomment. Nearly 2,000 comments originating from all 50 states and the District of Columbia have already been submitted via NTRA.com.
A PDF of the full Yarmuth-Boustany letter can be accessed at /media/8960663/042915_-_boustany-yarmuth_ntra_pari-mutuel_comments.pdf.
The NTRA’s previously released formal response to an invitation by the Treasury and the Internal Revenue Service for public comment, which was attached to Yarmuth and Boustany’s submission, can be found online: /media/8957297/letter_to_treasury_commenting_on_pari-mutuel_wagering_regulation_-_final.pdf.
To learn more about this issue, visit the Legislative section of NTRA.com at /legislative.