Contact: Keith Chamblin, NTRA, (859) 621-1120
Twelve Congressmen Sign Letter Urging Treasury to Enact RECENTLY Proposed Tax Reporting, Withholding Regulations
LEXINGTON, Ky. (Wednesday, April 12, 2017) – Twelve members of Congress from a number of key racing states have signed a letter delivered to the Department of Treasury requesting that recently proposed Internal Revenue Service (IRS) regulations relating to the way pari-mutuel winnings are calculated for tax withholding and reporting purposes be finalized as soon as possible.
The letter was in response to actions taken by the Treasury and Internal Revenue Service (IRS) in late December when the Treasury issued proposed regulations relating to withholding and reporting of pari-mutuel winnings. The 31-page Treasury document, entitled “Withholding on Payments of Certain Gambling Winnings,” accomplishes the goals championed by the NTRA nearly three years ago to modernize regulations related to pari-mutuel winnings. The proposed regulations will positively impact a significant percentage of winning wagers, particularly those involving multi-horse or multi-race wagers, and are expected to result in tens of millions of dollars in additional pari-mutuel wagering.
The proposed regulations clarify ‘the amount of the wager’ to include the entire amount wagered into a specific pari-mutuel pool by an individual—not just the winning base unit as is the case today—so long as all wagers made into a specific pool by an individual are made on a single totalizator ticket if the wager is placed onsite or through a single account if the wager is placed electronically.
The letter, which garnered bipartisan support, was co-authored by Rep. John Yarmuth (D-KY) and Rep. Patrick Meehan (R-PA). The additional signatories are Rep. Andy Barr (R-KY), Rep. James Comer (R-KY), Rep. Brett Guthrie (R-KY), Rep. Donald Norcross (R-NJ), Rep. Devin Nunes (R-CA), Rep. Bill Pascrell Jr. (D-NJ), Rep. Hal Rogers (R-KY), Rep. Thomas Rooney (R-FL), Rep. Kurt Schrader (D-OR), and Rep. Paul Tonko (D-NY).
“As you know, these regulations would update existing Treasury rules (Treas. Reg. Sec. 31-3402(q)-1) governing the reporting and withholding of certain pari-mutuel wagers. These rules have not been updated since the 1970s and we were pleased that Treasury responded to our requests to bring these regulations up to date,” the Congressmen wrote in a letter dated April 4, only days after a 90-day public comment period concluded. “The proposal better reflects the current pari-mutuel wagering environment and will lead to increased compliance while reducing burdensome paperwork, creating an overall system that will be more accurate and equitable for taxpayers.
“We look forward to these modernized rules being fully implemented and request that you act on this matter as quickly as practicable,” the letter concluded.
A copy of the full letter can be accessed at the following link: http://ntra.kinsta.com/wp-content/uploads/2017.04.04-Treasury-Pari-Mutuel-Winnings.pdf
“There is widespread agreement that these newly proposed Treasury regulations will reduce burdensome paperwork while creating a new system that is more accurate and equitable for taxpayers,” said NTRA President and CEO Alex Waldrop. “Throughout this process, the issue has received bipartisan support from members of Congress and we thank Representatives Yarmuth and Meehan, along with the other co-signatories, for leading the effort to modernize these regulations related to pari-mutuel winnings.”
About the NTRA
The NTRA, based in Lexington, Ky., is a broad-based coalition of more than 100 horse racing interests and thousands of individual stakeholders consisting of horseplayers, racetrack operators, owners, breeders, trainers and affiliated horse racing associations, charged with increasing the popularity, welfare and integrity of Thoroughbred racing through consensus-based leadership, legislative advocacy, safety and integrity initiatives, fan engagement and corporate partner development. The NTRA owns and manages the NTRA Safety and Integrity Alliance, NTRA.com, the Eclipse Awards, the National Handicapping Championship, NTRA Advantage, a corporate partner sales and sponsorship program, and Horse PAC, a federal political action committee. NTRA press releases appear on NTRA.com, Twitter (@ntra) and Facebook (facebook.com/1NTRA).