STATS Reporting Prizes To IRS In 2015

[Greg Ambrosius]

NFFC owners should note that in 2015 STATS will be altering the way it reports prize winnings to the IRS. After much consultation, we will now report total prize revenue minus the entry fees from the leagues where you earned those prizes. You will still need to itemize any additional expenses from your year of play, but at least this first part is done for you by STATS.

Here's the official wording I received from STATS Accounting:

"STATS will be reporting 1099's on a "Net Basis Method". Under this method the payor totals up the gross amounts credited to a player’s account during a year and subtracts the entry fee from each tournament from which the player received some kind of prize. Entry fees for tournaments where a player does not receive a prize, however are not a return of capital and cannot be subtracted for purposes of this reporting requirement. In addition, the entry fee will only be netted from the player that actually paid the fee."

So this will be done for all principle owners. If you have further questions, feel free to ask me or consult with your accountant. Thanks and great job this year everyone.

[Coyote Streakers]

Just want to make sure if we have shared prizes with another owner as a co manager all the winnings wont be put on primary owner? Thanks!

[Greg Ambrosius]

Just want to make sure if we have shared prizes with another owner as a co manager all the winnings wont be put on primary owner? Thanks!

No, but only you will have that entry fee deducted from your prizes by us. Hope that helps.

[eliasond]

This is great news Greg, thanks! This will save a lot of tax money for those of us that don't itemize.

[Sack]

Bravo - this is a major help re: reporting

[Sabretooth]

I just received my 1099 today and this was not done. It shows misc income in the amount of the checks I was sent, but no entry fee was deducted at all.

[Greg Ambrosius]

I just received my 1099 today and this was not done. It shows misc income in the amount of the checks I was sent, but no entry fee was deducted at all.

Chris, shoot me an email at [email protected] with the details and I'll forward to Accounting. Hopefully this is just an isolated case.

[Sabretooth]

Ok will do greg...thanks

[Jersey Dawg]

It's a big step in the right direction. Thanks. Next step would be to deduct all fees paid, including contests we did not win money playing. One step at a time.... thanks. Looking forward to seeing my 1099 arrive soon.

[CALI CARTEL]

Question, does "subtracts the entry fee from each tournament from which the player received some kind of prize" include all entry fees from that tournament? Or just specifically the one team that cashes?

For example, in the Draft Champions format, I entered three teams and won one league, is my "Net Basis Method" number $650 ($800 minus the $150 entry fee for the one team that won), or is it $350 ($800 minus the three $150 entry fees for the teams I entered in that "tournament").