After winning some money at a recent tournament, the subject of paying taxes came up. One of the casino employees told me that they have to notify the IRS if you win over a certain amount. He was unclear as to how the process works. A dealer said that they simply issue you a 1099 and then notify the IRS during tax season just the same as anyone else who 1099s someone.
The reason I'm asking is because another person at the table said that they notify them right away and if you owe the gov't (like back taxes or something) the IRS will seize it on the spot.
Anyone know how it works? LOL...and no I don't owe the gov't...just curious.
thanks in advance...wp