Daily Tax Update - December 29, 2016: IRS Issues Final Regulations on Reporting Certain Gambling Winnings

IRS Issues Final Regulations on Reporting Certain Gambling Winnings:  Today, the Treasury Department and the IRS issued final regulations (TD 9807) under section 6041 regarding the filing of information returns to report winnings from bingo, keno, and slot machine play.  The regulations update the existing requirements regarding the filing, form, and content of such information returns; allow for an additional form of payee identification; and provide an optional aggregate reporting method.  The final regulations are effective December 30.

IRS Issues Proposed Regulations on Withholding on Payments of Certain Gambling Winnings:  Today, the Treasury Department and the IRS issued proposed regulations (REG-123841-16) under section 3402(q) with respect to withholding on certain payments of gambling winnings from horse races, dog races, and jai alai and on certain other payments of gambling winnings.  The proposed rules amend the rules regarding how payers determine the amount of the wager in parimutuel wagering transactions with respect to horse races, dog races, and jai alai.  (In parimutuel betting, the bettors themselves establish the odds and payouts, as opposed to having fixed odds.)  In addition, the proposed regulations make ministerial updates to the current regulations to reflect current law regarding withholding thresholds and information reporting requirements.  

IRS Issues Guidance on Micro-Captive Transactions:  Today, the IRS issued Notice 2017-08, which modifies Notice 2016-66 to provide a 90-day extension for participants and material advisors to file disclosure statements regarding certain section 831(b) micro-captive transactions.  

IRS Issues Guidance on CPEO Certification Requirements:  Today, the IRS issued Revenue Procedure 2017-14, which addresses the requirements for a certified professional employer organization (CPEO) to remain certified and the procedures relating to suspension and revocation of CPEO certification.  The revenue procedure also provides guidance, including certain transition relief, to CPEOs with an effective date of certification of January 1, 2017, that receive notice of certification after that date.