Drew Dixon
Now that the first full weekend of college and NFL games are under the belt, the Internal Revenue Service is advising those wagering on games to mind legal limits on gambling.
Whether you might have bet on the Jacksonville Jaguars or the Miami Dolphins in the inner-state NLF matchup in South Florida Sunday afternoon, IRS officials are advising those who wager to stay within the law and report winnings. The IRS acknowledges about 50% of Americans have placed a bet on sports with the growth of online wagering at some time and most are unaware of some of the legal limits.
“Sports betting has grown exponentially in the past five years and is more common than ever. While online gambling is easily accessible, it’s not always legal,” said IRS Criminal Investigation Chief Guy Ficco. “As this year’s football season kicks off, IRS-CI special agents are continuing to monitor trends and using our expertise to root out criminal activity related to illegal gambling like money laundering and tax evasion.”
The increasing amount of online gambling isn’t limited to football and the Fall. There has been a huge increase in other sports gambling and activity with many landing winnings and never reporting them as earnings.
IRS officials point out Florida is a hotbed for wagering activity in the Fall with one of the most active football seasons in the United States with fertile opportunities ranging from a plethora of college programs to a are state with three NFL franchises in Tampa, Miami and Jacksonville.
“The state of Florida is filled with outstanding football programs, both on the collegiate and professional level, and with that comes the added excitement that people derive from placing bets on the game,” said Ron Loecker, Special Agent in Charge of IRS Criminal Investigation’s Tampa Field Office. “We want people to enjoy the game, but we also want to ensure that if you are gambling, you are doing so legally and responsibly to ensure you avoid any unwanted consequences later on.”
While it’s fun to win cash on wagering on football games, the IRS said any winnings are technically income and those lucky enough to score cash on a bet need to report the winnings. That should be part of filing annual tax returns. A good way to avoid any complications from wagering is to keep scrupulous records of all wagering, bets placed and winnings scored along with losses. Anyone with any questions of how to handle tax reporting regarding wagering should consult tax preparation professionals or visit the IRS website for further details.
“Ignorance of the tax laws does not exempt individuals from their responsibilities,” an IRS news release said.
