U.S. to require poker winnings be reported to IRS

WASHINGTON (Reuters) - The U.S. government said on Friday that casinos and other poker tournament sponsors will have to start reporting most players' winnings to the Internal Revenue Service starting next year.

Under a new requirement that goes into effect on March 4, tournament sponsors will have to report winnings of more than $5,000, the IRS said.

The IRS said it issued the new requirement "to clear up confusion about the tax reporting rules that apply to poker tournaments."

The confusion has centered on whether tournament sponsors who hold money for the players are required to report winnings and withhold taxes on them, the IRS said.

Poker tournament winners are required to report their winnings on their federal income tax returns. However, the IRS said on Friday that tournament sponsors do not have to withhold taxes from the winnings as long as they meet the reporting requirement.

(Reporting by Peter Kaplan, editing by Brian Moss)