Recovering Withheld Gaming Taxes
Depending on what country you live in, your gaming winnings can be subject to a 30% withholding tax in the United States. The good news is that there’s a way to get all or a portion of that withheld tax back. The bad news is that it entails filling out paperwork and dealing with the IRS.
Having all the proper documentation, including an Individual Taxpayer Identification Number (ITIN), can get you your refund quicker. If you don’t have an ITIN (assigned to non-U.S. residents who earn an income in the U.S.), one can still be acquired.
Back in 1996, Canada signed a treaty with the U.S. where gambling losses can be offset against gaming winnings. If you want to recover the taxes withheld, you will need to substantiate your gambling losses with proper documentation as proof and might be asked to produce valid receipts, tickets, statements, and other records, such as a log that shows how much you have both won and lost.
Having an ITIN Reduces Your Waiting Time
Because some winnings are subject to a 30% withholding tax, the only way you can get that money back is by dealing with the IRS. As expected, it’s not a simple process; dealing with the IRS entails applying for an ITIN, as well as submitting a tax return.
And you can’t submit a tax return without first having an ITIN. Getting an ITIN is not as simple as filling out a form; you will need to get a certified true copy of your ID and then submit a W-7 application. If it sounds confusing, that’s because it is.
With the expertise in gaming-related tax laws, Refund Management Services (RMS) understands all the IRS requirements to ensure that any entitled refund is successfully recovered quickly. RMS has never been refused an eligible refund and is only paid for successful gambling tax refunds, so there is no risk.
The staff at Refund Management Services have CA designations and are certified Certified acceptance agents for filing gaming tax refund applications. RMS is also a member of the Better Business Bureau and the Las Vegas Chamber of Commerce. For more information, call RMS toll-free from the United States or Canada at 1-888-272-5559. You can also e-mail RMS at [email protected].