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IRS irks casinos with pitch to cut jackpot tax threshold

LAS VEGAS (AP) — The IRS says a $600 slot machine or bingo jackpot might get its attention in the future, and the prospect has riled gamblers and the casino industry.

The agency currently requires reporting on a single jackpot or win that’s $1,200 or more for federal income-tax purposes. It has toyed with cutting that threshold in half, to $600.

A reportable keno win also could be lowered. The threshold for that game is $1,500.

The IRS suggested it is considering making the change and asked for public comments. A public hearing in Washington, D.C., is scheduled for June 17.

The threshold was first established in 1977.

The IRS declined to comment. The American Gaming Association is against the changes and says it has collected nearly 10,000 signatures from opponents.

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