Toronto, Canada, November 27, 2014 – Refund Management Services (www.RefundManagement.com), the number one choice for Canada’s biggest winners for U.S. gaming and casino tax refunds, is issuing its congratulations to the World Series of Poker (WSOP) Main Event champion and weighing in on international gaming tax exemption laws. The WSOP is held annually in Las Vegas, Nevada.
“The winner of the prestigious WSOP Main Event is considered by many to be the world champion of poker,” says Brooke Sacks, vice president of marketing & business development at Refund Management Services. “This year, Martin Jacobson of Sweden won the $10.0-million first prize. But because of different international tax exemption laws, the amount of money the winner or any runner-up can take home will differ significantly from the original prize amount.” (Source: Kirschen, R., and Dalla, N., “Martin Jacobson Wins 2014 WSOP Main Event Championship and $10 million,” November 12, 2014; www.wsop.com/news/2014/Nov/5127/MARTIN-JACOBSON-WINS-2014-WSOP-MAIN-EVENT-CHAMPIONSHIP-AND-10-MILLION.html.)
Sacks explains that the gambling income won by non-residents while playing in the United States varies wildly depending on their country of origin. Because of tax treaties negotiated between the U.S. and a small number of countries, gambling income is not taxable by the IRS. One of those countries is Sweden. As a result, WSOP champion Martin Jacobson gets to walk away with his $10.0-million winnings intact.
Most countries have a tax treaty with the U.S. whereby their gaming winnings are subject to a 30% withholding tax, says Sacks. At this year’s WSOP tournament, Chanracy Khun of Laval, Quebec came in 69th place and won $103,025. But because of the 30% withholding tax imposed by the IRS, Khun actually took home just $72,119. Back in 2010, Jonathan Duhamel from Boucherville, Quebec was crowned the champion of the WSOP Main Event, winning $8.9 million. He had $2.67 million taken off his winnings as a result of the 30% withholding tax. (Source: WSOP.com, “Event #65: No-Limit Hold’em Main Event; Results,” www.wsop.com/tournaments/results.asp?rr=5&grid=1052&tid=13665&dayof=, last accessed November 21, 2014.)
“Gambling is a $40.0-billion-a-year industry in the United States. It generates more revenue than movies, recorded music, cruise ships, spectator sports, and theme parks combined. And the U.S. government wants its share,” Sacks adds.
While there is a way for Canadians or any non-U.S. resident to get some or all of the 30% withholding tax back, it unfortunately means having to deal with the IRS. For the most part, IRS tax refund regulations and forms are both difficult and confusing, says Sacks.
“Refund Management Services has successfully completed the most U.S. gambling tax refunds for Canadians and other non-U.S. residents since 1998,” Sacks concludes. “We have a CA designation and are certified agents of the IRS for filing W-7 applications. On top of that, Refund Management Services has never been refused an eligible refund and can get gambling winnings refunded in as little as six to nine weeks depending on when you’ve won.”
To find out how Refund Management Services can help with U.S. gambling tax recovery for both pros and amateur gamblers, visit www.RefundManagement.com.