Originally Posted by ScreaminAsian

"The bill specifically requires companies to subject winnings to backup withholding, which under current law would require them to set aside 28 percent of all winnings. Taxes would apply to bets made within the U.S., or any U.S. territory by a U.S. citizen or resident."

can someone explain if this means they withhold for each tournament/session? or yearly, or as we cash out?

Originally Posted by thedinergetsby

This looks like the same bill Frank introduced last year. Why will it get further this year? I was hoping for the Barton bill first, something newer, and fresher, and something different.

The post-black-Friday momentum may help this bill but I still don't see a R controlled house passing legislation that legalizes all forms of gambling online.

Originally Posted by thedinergetsby

Gotta be yearly. Another part of it stated that they require states to take in to account all deposit/withdrawal records. I imagine the tax number they come up with at the end of each year is withdrawals - deposits.

That may not be exactly it, but there's no way they could logistically figure out how to institute taxes after every session everyone plays.

Originally Posted by golfcchs

Can anyone post links to Congressmen we should email, send letters to, or facebook pages?

I know I'm lazy, but I need the links to actually take action.

Originally Posted by PokerXanadu

The federal bills that we have seen so far have included language in these regards:

1. Tax withholding applies equally to online poker as it does to live play.

2. Sites report at the end of the year to the Treasury for each player gross winnings, gross losses, net winnings and taxes withheld.

The only tax withholding for US citizens currently required for poker play is 28% on tournament net winnings of $5K or more, but only if the player does not provide their Taxpayer Id Number (usually social security #). This would apply to online play as well.

The end-of-the-year report to the Treasury, essentialy a 1099 for online poker, would result in all players being liable for income taxes (state and federal) on their poker winnings, just as they are now. Poker players would no longer be able to evade these taxes.

The issues regarding netting wins & losses for online play, and regarding the excessive tax liability for players in states that don't allow gambling loss deductions are known and have been extensively discussed in this forum. The requirement for sites to include net winnings on their reporting is a step in the right direction, but doesn't go far enough. I'm sure this is one of the bill deficiences that the PPA is lobbying to correct, and hopefully we will see some corrections in the new bills.

In any case, the problems with these deficiencies will be obvious once sites get going. It will be in the best interests of government and the sites to correct them to maximize player participation and thereby government revenues. There will also be the opportunity to lobby for the necessary changes during the regulation development process following passage of a bill.