November 23, 2024

Proposal to modernize taxing of pari-mutuel winnings deadline approaching

Last updated: 5/26/15 1:08 PM


Proposal to modernize taxing of pari-mutuel winnings
deadline approaching

The Thoroughbred racing industry is rallying around a proposal to modernize
regulations relating to the taxing of pari-mutuel winnings, one week prior to
the U.S. Treasury’s June 2 deadline for public comment.

The proposed changes would modernize withholding and reporting rules by
redefining the “amount wagered” to include all of a bettor’s investment into a
single pari-mutuel pool, and not simply the base amount of the winning
combination. The proposed update would not only eliminate burdensome and
unnecessary paperwork but also generate millions of dollars in additional handle
which will benefit owners, trainers, jockeys, tracks, horseplayers and even
federal and state governments.

Because of the wide scope of the economic benefits, support for the proposed
modification has poured in from all segments of the horse racing and breeding
industry. But more support is needed. Individuals and organizations are urged to
submit comments to Treasury via a two-step form at
www.NTRA.com/IRScomment.

“Time is running short for individuals to convey a message to the Treasury
that these proposed changes matter,” NTRA president and CEO Alex Waldrop said.
“The industry has made a strong case to the Treasury that the time for tax
modernization is now, but they need to hear from as many individuals and
organizations as possible.”

To learn more about the effort to clarify pari-mutuel withholding and
reporting, visit the comprehensive Background page on the NTRA website at

http://www.ntra.com/en/legislative/background-on-effort-to-clarify-pari-mutuel-withholding-and-reporting
.



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