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  • stlcardinals84

    Leading RG Analyst

    • 278

      RG Overall Ranking

    • 2018 DraftKings FBWC Finalist

    • 2018 DraftKings FBBWC Finalist

    FanThrowDown issuing 1099’s based on gross winnings.

    While most sites use “net winnings” or “net withdrawals” for their 1099 reporting, FanThrowDown has decided to use the brilliant method of “gross winnings” for their reporting.

    That means if you deposited $1,000 there, won $500 worth of contests, and lost $1,500 worth to go broke, they will still be sending you a 1099 form for $500. To me, this is the worst method of reporting DFS results and will cause a major hassle for people who played on FanThrowDown and also other sites.

    If you are going to use the winnings method instead of the withdrawal method, at least have the decency to net it out first for the user. That’s just common sense.

    As a CPA with a vested interest in this, it’s yet another mistake from a site that is quickly falling behind. Good luck reporting this on your tax returns. It’s a huge mistake and frankly is enough for me to stop 100% of my action there.

  • Mike5754

    2013 PFBC Finalist

    The site is now up and they changed their terms and conditions… LMAO.

  • MrTuttle05

    • 442

      RG Overall Ranking

    • 2016 DraftKings FFWC Finalist

    • 2017 DraftKings FBWC Finalist

    @sjjl2008 said…

    here is their new portion of the website, is this any different?

    “ Tax Forms & Winnings Reported

    For any user who has a total in gross winnings that equals or exceeds $600 for any calendar year, we are required to get a W9 form for US citizens, and a W8 form from users outside the US.

    This total does not take losses or withdrawals into account, and is strictly a total in winnings that a user has been awarded in one year’s time. Filling out the required form is NOT an agreement to pay tax on this amount, it is strictly the information FanTD needs to report these winnings to the government as required. How this affects a user’s yearly tax burden is between them and the IRS, and our participation does not in any way affect that process.

    Please note that any pending withdrawals are held from processing for any users who are required to send the tax forms and have yet to do so.”

    Wow, definitely different.

    I expected it, but this just puts a nail in the coffin for me.

  • stlcardinals84

    Leading RG Analyst

    • 287

      RG Overall Ranking

    • 2018 DraftKings FBWC Finalist

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    @sjjl2008 said…

    here is their new portion of the website, is this any different?

    “ Tax Forms & Winnings Reported

    For any user who has a total in gross winnings that equals or exceeds $600 for any calendar year, we are required to get a W9 form for US citizens, and a W8 form from users outside the US.

    This total does not take losses or withdrawals into account, and is strictly a total in winnings that a user has been awarded in one year’s time. Filling out the required form is NOT an agreement to pay tax on this amount, it is strictly the information FanTD needs to report these winnings to the government as required. How this affects a user’s yearly tax burden is between them and the IRS, and our participation does not in any way affect that process.

    Please note that any pending withdrawals are held from processing for any users who are required to send the tax forms and have yet to do so.”

    This is so ridiculous that I want to throw my computer out the window right now.

    If you win a $22 heads up and get $40, you’ve never, EVER, EVER held more than $18 in income. Yet FTD is saying they need to 1099 you for $40.

    What logical person would even believe that to be true?

  • EmpireMaker2

    @Mike5754 said…

    The site is now up and they changed their terms and conditions… LMAO.

    I mean what are they thinking. I consider this borderline fraud now.

  • DillingerFour

    FD Rep - DFBMeeMee Champ (x2)

    • Blogger of the Month

    @sjjl2008 said…

    here is their new portion of the website, is this any different?

    “ Tax Forms & Winnings Reported

    For any user who has a total in gross winnings that equals or exceeds $600 for any calendar year, we are required to get a W9 form for US citizens, and a W8 form from users outside the US.

    This total does not take losses or withdrawals into account, and is strictly a total in winnings that a user has been awarded in one year’s time. Filling out the required form is NOT an agreement to pay tax on this amount, it is strictly the information FanTD needs to report these winnings to the government as required. How this affects a user’s yearly tax burden is between them and the IRS, and our participation does not in any way affect that process.

    Please note that any pending withdrawals are held from processing for any users who are required to send the tax forms and have yet to do so.”

    Yup. That’s new and NOWHERE near what anyone else does. I take back all those brags about wins I had on there this year.

  • whits23

    2010 FFFC Finalist, 2010 DFBC Finalist, 2011 FFFC Finalist, 2014 DSBC Finalist

    • x2

      2010 FanDuel WFFC Finalist

    • 2011 FanDuel WFBC Finalist

    I suggested this before and maybe we can now get it going..we need a section that in detail describes how each site determines how they report to IRS. it is probably one of the top factors in joining a site. Why the sites cant get the lawyers together and come up with a common way they all agree on. or you can do like FF and leave it up to the individual which i really enjoy

  • Mike5754

    2013 PFBC Finalist

  • headChopper

    RG Contributor (OG Status)

    • 498

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    @Mike5754 said…

    It is just getting started. I have one from the early days that I’ve been saving for a day just like this. Will wait until they respond before starting.

    Do it…do it

  • emac

    @whits23 said…

    I suggested this before and maybe we can now get it going..we need a section that in detail describes how each site determines how they report to IRS. it is probably one of the top factors in joining a site. Why the sites cant get the lawyers together and come up with a common way they all agree on. or you can do like FF and leave it up to the individual which i really enjoy

    Remember FF is in Canada so different legal rules apply.

  • kirklandguy

    Was FTD operational for the 2012 calendar year? Did anyone here get a 1099 for 2012 from them?

  • Cal

    RG CoFounder & Admin

    • 414

      RG Overall Ranking

    • $1M Prize Winner

    • x4

      2015 DraftKings FFWC Finalist

    I’m traveling today so been in and out, but I’ve been speaking with them. Really frustrated they haven’t put an official response up in here yet as they’ve been telling me they are going to all day. Statement is supposedly coming asap, then we’ll go from there.

  • MrTuttle05

    • 442

      RG Overall Ranking

    • 2016 DraftKings FFWC Finalist

    • 2017 DraftKings FBWC Finalist

    @EmpireMaker2 said…

    I mean what are they thinking. I consider this borderline fraud now.

    Their decision makers just keep making it worse. Instead of disgruntled users it now appears that they are looking for a legal battle….

  • sjjl2008

    i would love an explanation. this is absurd. i am sending in whatever forms they need and cashing out.

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @whits23 said…

    I suggested this before and maybe we can now get it going..we need a section that in detail describes how each site determines how they report to IRS. it is probably one of the top factors in joining a site. Why the sites cant get the lawyers together and come up with a common way they all agree on. or you can do like FF and leave it up to the individual which i really enjoy

    This is in my annual tax article. Of course, if sites are going to change policy for the previous year in the following year it doesn’t do anyone any good.

  • bsell25

    @stlcardinals84 said…

    Hopefully someone has a screen capture of the Terms of Service and the FAQ that are likely to be changed once the site is back up.

    I took one earlier today just in case.

    Feel free to email me at bryansell@gmail.com and I’ll send it out.

  • Mike5754

    2013 PFBC Finalist

    ****UPDATE*** Scheduled Maintenance is complete. To view the new and improved FTD please visit the 2nd link. Thanks.

    Again here is the old version
    http://web.archive.org/web/20130807010515/https://fanthrowdown.com/page/view/scoring_rules

    and the new updated version.
    https://fanthrowdown.com/page/view/scoring_rules

  • garbage9922

    • 2016 DraftKings FHWC Finalist

    @shims3 said…

    I got an email from them after asking some questions. So they came back treating us as contractors of their company. Our losses should be treated as expenses, since DFS is not gambling. Here is what they said.

    “We will be sending out a more informative email on the subject as there has been a ton of confusion.

    From what I have been told, the major misunderstanding happening across the industry on this is that people are looking at gambling law for this, and that has absolutely no bearing on it.

    DFS is not considered gambling (which is why it is legal), so we cannot report earnings in that fashion.
    We have to report anything we pay out as an earning for that individual, just like they were an independent contractor or small business. What they have “lost” would be their expenses or overhead for their business, and would only have an effect on what they owed the IRS, not on what we have to report as paid out earnings for the year.

    Signing our form is just an admission that this amount was paid out, not that you profited this amount for the year and owe taxes on it. From what I understand (I’m obviously not an accountant or tax law expert), if your overhead is higher than your earnings, or keep them from reaching that $600 mark, you shouldn’t have any tax liability.”

    I withdrew my money over a month ago. Their mobile version was not good so I finally bailed.

    I find their comment odd, since reporting gross winnings and then itemizing each individual entry fee as a deduction is how things would often be done for gambling income.

    So their comment seems nonsensical to me. It’s like saying “we are not thing A, therefore we will do things as if we were thing A”.

    By the way, there are also several states where you’re not allowed to deduct gambling losses against gambling wins.

    NOTE: None of this is meant to be construed as saying DFS is or is not gambling for purposes of this discussion.

  • whits23

    2010 FFFC Finalist, 2010 DFBC Finalist, 2011 FFFC Finalist, 2014 DSBC Finalist

    • x2

      2010 FanDuel WFFC Finalist

    • 2011 FanDuel WFBC Finalist

    emac they are not really in canada i dont think..i think the owners are but i could be wrong. not sure that would change how we report as its more where we are located but i am willing to admit i have no idea on that LOL.

    It would be nice if RG would do a section and keep it updated each jan on how each site deals with this..let the site themselves respond or simply post their Terms of service regarding it if they address it.

    How many of you know FDP count as winnings towards your net? I bet condia netted over $600 in those alone last week.

  • mirage88

    2015 WFHC Winner

    • 2016 FanDuel WFFC Finalist

    • 2013 StarStreet NFL Playboy Mansion Finalist

    • x2

      2014 StarStreet MLB Playboy Mansion Finalist

    I have an email from a FTD rep where they went out of their way to tell me that their W-9 policy is identical to both Fanduel and Draftkings: Total deposits – total withdrawals + account balance on Dec. 31.

    So basically they flat out lied to me in this email?

  • Ceodore

    I would think for them to be able to change the ToS they would have to have each user reagree to them. Otherwise what’s to stop them from sneaking something in that says “by depositing money to our website, we never have to pay it back to you.”?

  • easternmh

    • 2019 Blogger of the Month

    Wow I feel really bad for u guys that are getting screwed ….

  • Taterchipdip

    @sjjl2008 said…

    here is their new portion of the website, is this any different?

    “ Tax Forms & Winnings Reported

    For any user who has a total in gross winnings that equals or exceeds $600 for any calendar year, we are required to get a W9 form for US citizens, and a W8 form from users outside the US.

    This total does not take losses or withdrawals into account, and is strictly a total in winnings that a user has been awarded in one year’s time. Filling out the required form is NOT an agreement to pay tax on this amount, it is strictly the information FanTD needs to report these winnings to the government as required. How this affects a user’s yearly tax burden is between them and the IRS, and our participation does not in any way affect that process.

    Please note that any pending withdrawals are held from processing for any users who are required to send the tax forms and have yet to do so.”

    So if this is the new “norm “ to report on gross winnings from FTD, Then does this mean that FD DK, DS etc… are doing it wrong? Who is right here?

  • wy3134

    so over/under 6 months before big gubment is knocking at the door wanting control????

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @mirage88 said…

    I have an email from a FTD rep where they went out of their way to tell me that their W-9 policy is identical to both Fanduel and Draftkings: Total deposits – total withdrawals + account balance on Dec. 31.

    So basically they flat out lied to me in this email?

    Correct.

  • whits23

    2010 FFFC Finalist, 2010 DFBC Finalist, 2011 FFFC Finalist, 2014 DSBC Finalist

    • x2

      2010 FanDuel WFFC Finalist

    • 2011 FanDuel WFBC Finalist

    If you like your current terms of service you can keep it oh wait thats the healthcare lie

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