YOUR GAMBLING CASINO WINNINGS ARE TAXABLE

You're in a casino. It could be in Las Vegas, Atlantic City, or one of the many riverboats which ply the waters of the Mississippi and Ohio Rivers.

You've been stuffing dollar tokens into a slot machine when suddenly lights at the top of the machine start flashing.

Finally! You've hit a jackpot.

Casino workers converge to your spot. After offering congratulations, they leave for a few minutes, then return with your $1,500 jackpot winnings -- and a Form W-2G, which calls for your name, address, Social Security number and driver's license number.

You're feeling good about your modest jackpot, but come April 15, the downside of the winnings crop up. You owe the government money that, in many cases, you have already spent.

Money won at the gaming tables or slot machines is taxable income in Uncle Sam's Eyes.

You must report it as "other income" on Form 1040, your federal income tax form.

"Any amount you win is taxable," said Leah Marquard, a tax loss specialist with the Internal Revenue Service's St. Louis District office. "A lot of folks have become caught up in visiting casinos since the arrival of the riverboat casinos in this area and they don't really realize that every dollar won is taxable," said Marquard.

Currently nearby riverboat gambling casinos are located at Alton, E. St. Louis and Metropolis, Ill., with possibilities of additional casinos following an April 5 vote in Missouri.

People who win small amounts probably don't think much about the tax end of it, notes Marquard.

But any jackpot win of $1,200 and over is recorded by the casino and reported to the IRS. For example, you hit the slots for $1,500, and including your other income, you're in the 28 percent tax bracket. That means you have a $420 tax bill for that $1,500 win.

The IRS realizes that unless a jackpot win is $1,200 or more, reporting of gambling winnings is a voluntary compliance.

"We won't get 100 percent compliance," Marquard admitted.

People can deduct some of their losses, but the IRS imposes several conditions, said Marquard.

If you have gambling winnings to report, you must use the long-form, 1040, not 1040A, or 1040EZ, the simpler, easier versions of the individual returns. You must itemize deductions. Gambling losses fit under other miscellaneous deductions.

"And, you may deduct only an amount up to the total of winnings you list as other income," she said.

Unless you are a declared professional gambler, that is. Professionals may deduct costs of traveling, food and other expenses associated with gambling. To be considered a professional you must have a federal gambling stamp, which costs $50.

To deduct a gambling loss, you must be able to prove it, points out Marquard.

The IRS has some suggestions for people who visit casinos on a regular basis.

"Keep a dairy," said Marquard. "Record your visits to a casino, and keep records of everything lost and everything won."

The least thing you should have on your records, or diary, is a log of the date, time and amount of losses. These records should be made regularly and "contemporaneously," which means writing it down when it happens.

"That would be evidence," said the IRS spokesperson, "but it's not absolute proof of anything."

The casinos can help.

Most casinos have player cards that slot players can pop into the machines when they start play. Such cards provide an electronic record of wins and losses on the machine.

For table games, a pit boss, manager or supervisor can track your activities if you ask for it. But that, too, has to be handwritten in a log book.

In case you win more than you lose, or you don't get the information down on paper you need to verify those losses, you should plan ahead to avoid a money crunch next time.

One reason: If you owe the government a big chunk of cash, you may get slapped with penalties and interest on top of the added tax.

To avoid such penalties you must have paid the government at least 90 percent of the total tax you owe -- including tax on your wages, interest, dividends and other income, or 100 percent of what you owed last year.

That money can come from cash withheld from your paycheck, or held out at your request from your gambling winnings. Or, you can send the IRS estimated tax payment to build up your account with the government.

Any time you win, it's a good idea to set money aside to pay the taxes, suggests the IRS. For example, if you hit the slots for $3,000, and are in that 28 percent bracket, you're looking at a $840 tax bill for that $3,000 win.

The IRS recommends putting that money ($840 on the $3000 win) into a special bank account, money market fund, or some short-term investment-- something that is not prone to drop in value so the cash will be there when the time comes to pay the tax man.

A new division of Spartech Corporation, has been formed -- Spartech Compounding.

"Two facilities -- The Resin Exchange of Cape Girardeau and Spartech-Franklin Plastics of Kearny, N.J. -- will make up the new division," said Bradley B. Buechler, president and chief executive officer of Spartech Corp., headquartered in St. Louis.

The two merchant compounding facilities combine for an annual production capacity of 100 million pounds of PVC and Engineered Thermoplastic compounds, noted Buechler.

"This name change begins a new era for Spartech Corporation," he said. "Especially our merchant compounding group."

The Spartech family now consists of:

-- Spartech Plastics, the nation's largest custom rigid sheet and rollstock extruder, with eight plants and 50 extrusion lines, including Atlas Plastics, Corp., 1 Atlas Drive in Cape Girardeau. The local facility has nine extrusion lines, said John Sepulvado, general manager.

-- Spartech Compounding, with the two facilities. The Cape Girardeau plant, located at 1 Plastics Ave., in Nash Road Industrial, has production capacity of about 250,000 pounds of PVC and thermoplastic compounds, noted the plant's general manager, John Edwards.

-- Spartech Vy-Cal Plastics, a PVC film operation, headquartered near Philadelphia.

Spartech recently announced significant increases in its first-quarter results for 1994. Revenues were $49.2 million, a 30 percent increase over the first quarter of 1993. Net earnings for the quarter were $2.1 million, 65 percent over the first quarter of 1993.

"All Aboard!" It's almost Showboat time in downtown Cape Girardeau.

"Showboat '94" is the theme for the annual Downtown Merchants Association's annual fundraiser auction and gala, to be held April 9 at Port Cape Girardeau.

The social hour, hors d'oeuvres buffet and "silent auction" will get under way at 6:30 p.m., with the regular auction to begin at 8 p.m.

Three of the big items to be auctioned this year include a full-length, mink coat valued at $4,000, provided by Hecht's Store; a $4,000 Las Vegas travel package, provided by the Boyd Gaming Corp.; and four tickets to a St. Louis Cardinals-Chicago Cubs baseball game.

Many more items, provided by various Cape Girardeau merchants will be on the regular auction list.

Cost for the event is $10 per person, which includes hors d'oeuvres. A cash bar will be available.

Additional information and tickets are available by calling 334-5723.

Wayne Smith is going to Effingham, Ill.

Smith, of Cape Girardeau, has joined Consolidated Communications Inc. as president of the firm's Effingham, Ill., office. He previously served as general manager of the rural markets for CyberTel Cellular, an Ameritech Co.

In announcing Smith's new position recently, we had mentioned he was going to Harrisburg, Ill. Sorry about that.

ELSEWHERE:

JCPenney will double the size of its present store at Poplar Bluff. The opening of a new, 60,000 square foot store near the intersection of Cherry Street and Westwood Boulevard, is targeted for early 1995.

The current store is located in Valley Plaza.

Olympus Construction of Jonesboro, Ark., is primary contractor for the new store.

Kentucky Oaks Mall at Paducah is adding a 1,500 square foot community room, designed to serve as a meeting facility for professional organizations, non-profit groups and other events.