Form 1085: Filing W-2G Gambling Winnings

Form 1085 was a transmittal document used by specific gambling establishments to submit paper copies of Form W-2G, detailing certain gambling winnings, to the Internal Revenue Service. The IRS has since updated its procedures, and filers are now directed to use Form 1096, Annual Summary and Transmittal of U.S. Information Returns, for this purpose. This guide outlines the modern requirements for transmitting gambling winnings information to the IRS.

The Purpose of Transmittal Forms for Winnings

When a business, such as a horse or dog track, is required to report winnings to the IRS on paper, a transmittal form acts as a summary and cover sheet. This document informs the IRS about the identity of the filing entity, the total number of individual forms included in the mailing, and the aggregate dollar amount being reported across all the forms.

The individual who won the wager receives a copy of Form W-2G, which details the specifics of their winnings. The payer, or the establishment that awarded the prize, is responsible for sending a separate copy of that same Form W-2G to the IRS. When multiple W-2G forms are sent together in a paper format, they are bundled under a single transmittal form, which consolidates the key information from the entire batch into one summary document for the IRS.

Determining When a Form W-2G is Required

Before any transmittal form can be prepared, a payer must first determine if they have a requirement to issue a Form W-2G, Certain Gambling Winnings. For winnings from horse racing, dog racing, and jai alai, the reporting threshold is met when a winner receives $600 or more, provided that the payout is at least 300 times the amount of the original wager. If both of these conditions are satisfied, the payer is obligated to complete and issue the form.

To properly complete a Form W-2G, the payer must collect specific information from the winner at the time of the payout. This includes the winner’s full name, current address, and Social Security Number (SSN).

The payer must also provide their own information on the form, including their name, address, and Taxpayer Identification Number (TIN). The form requires details about the wager, such as the date of the winning event and the type of wager.

Completing the Correct Transmittal Form

For paper filers, Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is the correct document to use when sending one or more Forms W-2G to the IRS. Only official, scannable copies of Form 1096, which are available for free from the IRS, can be used; photocopies are not acceptable as they may not be machine-readable.

When filling out Form 1096, the filer’s name and address are entered at the top left. Box 3 requires the total number of forms being submitted with the transmittal, which in this case would be the count of all the attached W-2G forms. Box 5 is for the total amount of federal income tax withheld, if any, from all the W-2G forms combined. If no tax was withheld, this box should be left blank.

To specify the type of form being transmitted, the filer must mark an “X” in the box for “W-2G” in Box 6. The total winnings reported on the accompanying W-2G forms should be entered in the corresponding box on Form 1096.

How to Submit the Forms Package to the IRS

Once the individual Forms W-2G and the summary Form 1096 are completed, the entire package must be mailed to the correct IRS service center. The specific mailing address depends on the filer’s location and can be found in the official instructions for Form 1096. It is important to send Copy A of the Forms W-2G, along with the completed Form 1096, to the designated address.

The annual deadline for filing paper copies of Form W-2G with Form 1096 is February 28 of the year following the calendar year in which the winnings were paid. If this date falls on a weekend or holiday, the deadline is extended to the next business day.

Entities that are required to file 10 or more information returns in aggregate during a calendar year must file electronically. This electronic filing is done through the IRS’s Filing Information Returns Electronically (FIRE) system. When filing electronically, Form 1096 is not used, as the electronic system serves as the transmittal method. This requirement encompasses a wide range of information returns, not just Form W-2G.