{"id":256743,"date":"2023-01-31T12:52:22","date_gmt":"2023-01-31T18:52:22","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=256743"},"modified":"2023-01-31T14:37:16","modified_gmt":"2023-01-31T20:37:16","slug":"dfs-players-could-feel-irs-pinch-due-to-new-tax-laws","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/","title":{"rendered":"IRS Could Target Daily Fantasy Sports Winners Under American Rescue Plan"},"content":{"rendered":"

The American Rescue Plan Act (ARPA) was approved by congressional Democrats and signed by President Biden to provide financial assistance to Americans during the earlier days of the coronavirus pandemic. But it could be a drag on some daily fantasy sports (DFS) winners.<\/p>\n

\"IRS\"
The IRS building in Washington, DC, seen above. Under new tax laws, DFS players could be targeted by the agency. (Image: AP News<\/em>)<\/figcaption><\/figure>\n

Among the more controversial provisions found in ARPA is a significant alteration to how the IRS handles taxpayers\u2019 received payments from third-party settlement organizations (TPSOs), such as Cash App and PayPal. Under ARPA, the IRS can collect taxes on any payment of $600 or more. Previously, the threshold was $20K and a minimum of 200 transactions.<\/p>\n

That means anyone who earned more than $600 from DFS play or from selling items on internet retail sites, such as eBay and Etsy, and received those payments through the likes of Cash App, PayPal, Venmo, and other comparable platforms, is liable for taxes. In 2020, the IRS ruled DFS<\/a> falls under the same guidelines as sports betting.<\/p>\n

The amount paid by a daily fantasy sports player to participate in a daily fantasy sports contest constitutes an amount paid for a wagering transaction under Section 165 (d),\u201d<\/strong> according to the IRS.<\/p><\/blockquote>\n

Previously, DFS operators, such as DraftKings and FanDuel, argued that DFS is a game of skill, not betting. The IRS didn\u2019t agree, noting the game of skill argument<\/a> carries some merit. But DFS is akin to poker in that skill matters but doesn\u2019t dictate results.<\/p>\n

ARPA is \u2018Flat Lie\u2019 in Tax Terms<\/h2>\n

The White House and congressional Democrats consistently said that the new tax provisions featured in ARPA would not impact anyone making less than $400K per year. But some tax experts contend that\u2019s no more than political talk.<\/p>\n

The reality of it is they said nobody making under $400,000 a year was going to have an increased chance of audit or pay more on taxes. That\u2019s a flat lie. That\u2019s not accurate. They\u2019re lying to you,\u201d <\/strong>CPA and tax lawyer Bruce Willey told Fox News Digital<\/em>.<\/p><\/blockquote>\n

BakerHostetler Nationwide Tax Chair Jeff Paravano told the media outlet that DFS players need to be diligent record keepers because they can deduct losses against their winnings. But participants \u201ccan only deduct the losses to the extent of your winnings.\u201d<\/p>\n

So burdensome are the new taxes set forth by ARPA that they could extend to activities such as fantasy sports leagues and office pools<\/a> in which money is exchanged. In fact, if the league commissioner took payments via TPSO, he or she could be liable for taxes on that money even though that cash doesn\u2019t constitute a placed wager.<\/p>\n

\u2018Stealth Tax Increase\u2019 Beyond DFS<\/h2>\n

Willey told Fox News Digital<\/em> the plan is a \u201cstealth tax increase\u201d and that it\u2019s ridiculous to assume the IRS increasing monitoring of TPSO payments won\u2019t lead to more audits and taxes paid.<\/p>\n

\n

Some experts argue that the number of 1099 tax forms issued will double as ARPA\u2019s tax revisions ramp- up. Additionally, the $600 threshold could force the issuance of 1099s for activities as mundane as parents sending money to kids, which they\u2019re allowed to deduct up to $17K annually.<\/p>\n<\/div>\n

In the Senate, there\u2019s bipartisan support to lift the threshold to $5,000. As for raising revenue, the Joint Committee on Taxation recently forecast the new $600 TPSO plan will raise a mere $8.1 billion for government coffers over a decade.<\/p>\n

That is for a country that\u2019s roughly $30 trillion in debt.<\/p>\n","protected":false},"excerpt":{"rendered":"

The American Rescue Plan Act (ARPA) was approved by congressional Democrats and signed by President Biden to provide financial assistance to Americans during the earlier days of the coronavirus pandemic. But it could be a drag on some daily fantasy sports (DFS) winners. Among the more controversial provisions found in ARPA is a significant alteration […]<\/p>\n","protected":false},"author":46,"featured_media":256745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14007,60,1074],"tags":[84813,81928,80968],"acf":[],"yoast_head":"\nDFS Players Could Feel IRS Pinch Due to New Tax Laws<\/title>\n<meta name=\"description\" content=\"New tax codes could pave way for IRS to target DFS winners.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DFS Players Could Feel IRS Pinch Due to New Tax Laws\" \/>\n<meta property=\"og:description\" content=\"New tax codes could pave way for IRS to target DFS winners.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-31T18:52:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-31T20:37:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/IRS-scaled.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1659\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/\",\"url\":\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/\",\"name\":\"DFS Players Could Feel IRS Pinch Due to New Tax Laws\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/IRS-scaled.jpeg\",\"datePublished\":\"2023-01-31T18:52:22+00:00\",\"dateModified\":\"2023-01-31T20:37:16+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"New tax codes could pave way for IRS to target DFS winners.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/IRS-scaled.jpeg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/IRS-scaled.jpeg\",\"width\":2560,\"height\":1659,\"caption\":\"The IRS building in Washington, DC. Under new tax laws, DFS players could be targeted by the agency. (Image: AP News)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Sports Betting\",\"item\":\"https:\/\/www.casino.org\/news\/sportsbetting\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"IRS Could Target Daily Fantasy Sports Winners Under American Rescue Plan\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"DFS Players Could Feel IRS Pinch Due to New Tax Laws","description":"New tax codes could pave way for IRS to target DFS winners.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/","og_locale":"en_US","og_type":"article","og_title":"DFS Players Could Feel IRS Pinch Due to New Tax Laws","og_description":"New tax codes could pave way for IRS to target DFS winners.","og_url":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-01-31T18:52:22+00:00","article_modified_time":"2023-01-31T20:37:16+00:00","og_image":[{"width":2560,"height":1659,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/IRS-scaled.jpeg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/","url":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/","name":"DFS Players Could Feel IRS Pinch Due to New Tax Laws","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/IRS-scaled.jpeg","datePublished":"2023-01-31T18:52:22+00:00","dateModified":"2023-01-31T20:37:16+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"New tax codes could pave way for IRS to target DFS winners.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/IRS-scaled.jpeg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/IRS-scaled.jpeg","width":2560,"height":1659,"caption":"The IRS building in Washington, DC. Under new tax laws, DFS players could be targeted by the agency. (Image: AP News)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/dfs-players-could-feel-irs-pinch-due-to-new-tax-laws\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Sports Betting","item":"https:\/\/www.casino.org\/news\/sportsbetting\/"},{"@type":"ListItem","position":3,"name":"IRS Could Target Daily Fantasy Sports Winners Under American Rescue Plan"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/256743"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=256743"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/256743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/256745"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=256743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=256743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=256743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}