07/13/2016 11:47AM

Two congressmen sign letter pushing for changes to tax law


Two federal legislators who are members of the Congressional Horse Congress have signed a letter urging the Treasury Department to approve changes to tax rules that would benefit horseplayers, according to a racing organization that is lobbying for the changes.

In the letter, addressed to Treasury Secretary Jacob Lew, Rep. John Yarmuth of Kentucky and Rep. Charles Boustany of Louisiana wrote that the rule changes would “modernize pari-mutuel tax treatment” by allowing horseplayers to use the total amount of money bet in a single parimutuel pool as the basis for determining whether reporting and withholding requirements are triggered.

“We strongly encourage you to act on this matter by finalizing the proposed rule,” the letter concludes.

The letter was provided by the National Thoroughbred Racing Association, the racing organization that has been pressing for the adoption of the changes. Recently, appropriations bills in both the House and Senate included language urging Treasury and the IRS to approve the tax changes.

If the changes are approved, the number of winning bets that are subjected to automatic reporting and withholding would likely be drastically reduced, especially for wagers like the pick four, pick five, and pick six.