Are my gambling or lottery winnings subject to federal income tax? If so, how little?

The Internal Revenue Service (IRS) would have you believing that gambling and lottery winnings are all subject to income tax, and that the payout company may be required to withhold estimated income taxes from your payout.
Some of the forms of gambling or “wagering” winnings that the IRS claims are taxable are those from bingo, slot machines, keno, poker tournaments, sweepstakes, wagering pools, lotteries, parimutuel pools for horse races, dog races, or jai alai.
In this week’s Freedom Hour presentation, Peymon Mottahedeh, founder of Freedom Law School, will show you upon whom or what the Internal Revenue Code actually imposes a wagering tax, and will also show you which payout companies are required to inform the IRS f your winnings, or withhold income tax from your winnings.