By GottaLaff
Over at DKos, there's a great piece that
you should read in its entirety. See? I even italicized that so you'd go over there. But I won't leave you in suspense. Here are
a few excerpts, which you can put in context if you read my
original post:
Let's look at some relevant instructions for filing IRS Form W-2G....
Box 1. The payer must furnish a Form W-2G to you if you receive...Any gambling winnings subject to federal income tax withholding.
Box 2. Any federal income tax withheld on these winnings is shown in this box. Federal income tax must be withheld at the rate of 25% on certain winnings less the wager.
Instructions to Winner
If you did not provide your federal identification number to the payer, the amount in this box may be subject to backup withholding at a 28% rate. Include the amount shown in box 2 on your Form 1040 as federal income tax withheld.
The W-2G is not just for people who win lots of money gambling. The form also has instructions that are pretty clear even if you are gambling and losing significant amounts of money as well:
Generally, report all gambling winnings on the "Other income" line of Form 1040. You can deduct gambling losses as an itemized deduction, but you cannot deduct more than your winnings. Keep an accurate record of your winnings and losses, and be able to prove those amounts with receipts, tickets, statements, or similar items that you have saved.
The bottom line: Whether you win or lose, Uncle Sam wants to know about it if you are spending significant sums of money gambling. [...]
Given the company he was keeping in some of these early marathon sessions, it is entirely possible he was playing with other people's money. In that case, he still has to file some paperwork. And so do they. According to IRS form W-2G
Signature. You must sign Form W-2G if you are the only person entitled to the winnings and the winnings are subject to regular gambling withholding.
Other winners. Prepare Form 5754, Statement by Person(s)
Receiving Gambling Winnings, if another person is entitled to any part of these winnings. Give Form 5754 to the payer.
If he is winning and not declaring -- that's a crime. If he is losing and not taking the deductions, that is peculiar for a lot of obvious reasons. It means he never wins. If he is losing his own money and not taking the deduction, it looks like he is trying to hide a problem. If he is losing other people's money that certainly raises questions about influence peddling if they have business in front of his committee. Whether he is winning or losing, it doesn't take a whole lot of imagination to see how a lobbyist bankrolling the senator's marathon craps session might be using this as a way of funneling money into the senator's coffers without drawing attention to the transactions.
Finally, all this talk about unreported transactions raises raises more questions no one in the media will likely bother to ask: Has anyone seen Cindy McCain's W-2G? Does anyone know if she ever filed a 5754? Has she been supporting his gambling habit? With all the interest paid to Obama's mortgage payments, you would think something this glaring would get more media attention. Of course, then the press would have to get off the Lapdog Express and that wouldn't be any fun, would it?
Nah. It's much more fun to concentrate on the superior candidate and try to rip him to shreds.
.jpg)