TAX REPORTING POLICY
For players winning prize money of $600 or more and for nonresident aliens winning prize money of any amount:
FOR PRIZES OF $600 OR MORE, OR PRIZES WHICH WILL BRING THE TOTAL PRIZES YOU RECEIVE FROM THE SAME PAYER TO $600 OR MORE FOR THE CALENDAR YEAR: Please bring your US Social Security or Tax ID card to all tournaments with prizes possibly this large. If you have no US social security number or tax ID number, the organizer must withhold and send to the IRS 30% of your prize. Prize checks will be written only to the winners, not to third parties.
FOR ALL PRIZES IF YOU ARE A NON-RESIDENT ALIEN: The organizer must withhold and send to the IRS 30% of your prize. If your country has a tax treaty with the United States and you have or obtain a US Social Security or Tax ID number, you may be able to avoid this withholding by submitting an IRS Form 8233 to the payer.
IF 30% OF YOUR PRIZE IS WITHHELD AND SUBMITTED TO THE IRS, you will receive a 1042 form in the following calendar year. You may use this form to submit a tax return to the IRS, claim expenses, and attempt to recover some or all of the withheld tax.
If you received a total of $600 or more in one calendar year for prizes in tournaments held by SENECA, we are required to report your winnings, address, and social security number to the Internal Revenue Service. Please contact Ben Swiszcz (SENECA Treasurer) at email@example.com to coordinate the reporting of your information for tax purposes.
Thank you for your assistance!