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Refund Issues with your 1042-S

Discussion in 'Misc. Vegas Chat' started by westcanguy, Apr 7, 2015.

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  1. westcanguy

    westcanguy Low-Roller

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    I'm not sure if this applies only to non residents or to anyone that gets a 1042-S when getting a handpay over $1200.00

    I am Canadian, visit Vegas a few times every year and usually return home with a 1042-S. The first time, I used a service to get my taxes back but when I saw how easy it was, I file my own returns on a 1040NR. Last year, my return was held up because there was no ITIN number noted on the 1042-S. The IRS asked me to write it in the appropriate area and fax it to them which I did and shortly thereafter, I got my refund.

    This year, I filed my return for a refund in January while I was vacationing in Palm Springs, figuring it would be processed faster if mailed down there. Doesn't matter. If your return is completed on a 1040NR based on a 1042-S gambling win, they reserve the right to delay processing for up to 6 months. Wonderful!
    Just over a week ago, I checked "Where's my refund" to discover that the IRS has now received my return and are processing it. Nothing has happened since then so I called them this morning. Only had to wait an hour... anyways, I tell them my situation, tell them that I have a code of 1581 and asked if there was any issues. I'm told that there is a new policy this year for returns that include a 1042-S form. Apparently, the IRS has had issues with many casino's where the casino does not include the SSN or ITIN when they are filling out the form. That is a problem because the IRS has trouble verifying that the casino has actually remitted the withholding tax to the IRS. Being Canadian, he asked if my ITIN number was typed in the appropriate area of the 1042-S. I said no and that I had written it in before I filed my return. I was told that they don't accept written ITIN numbers anymore. Typed only. What about last year, I asked. Nope, that doesn't work this year. New directive came out in January and SSN and ITIN numbers must be typed on the 1042-S form because anyone can write a number in.

    I was told that when you get a handpay that includes a 1042-S, you must get them to type in your SSN or ITIN number on the form or you risk having your return delayed or even rejected.
    I asked how am I supposed to remember my ITIN number. He said the casino can have that info on your loyalty card but if not, write it down and bring it with you and provide the number if you are getting issued the 1042-S

    I'm sorry for the long winded post but I wanted people to know what is going on and that you need to be prepared so that you don't have issues with delays or rejection pending further proof.
    While I was in Palm Springs, I got another 1042-S and nope, no ITIN number was entered. I'll be delayed again next year as well. I asked the agent why they don't post this on their site to the public and he agreed and apologized. That and .50 cents won't buy me a coffee.

    Americans...make sure your SSN number is typed on the 1042-S. Canadians, bring your ITIN number down with you and give it to the attendant when they get your ID and request it be typed in. You'll save yourself some frustration down the road.
     
  2. newmans

    newmans VIP Whale

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    If you've never filed a US tax return, I'm not sure why you would have an ITIN. It's a bit of cart-horse. In order to obtain my ITIN, I had to attach the paperwork, docs etc for the ITIN to the US tax return. I tried to obtain the ITIN before filing, and it was rejected. CET tried to submit the paperwork for the ITIN for me.
    So, it you've never received a 1042-s for a handpay etc, I'm not sure how you could provide an ITIN. Have they changed anything to accomodate the new rules?

    It's a lot easier for a US resident. They can provide the SSN for their W2G.
     
  3. Casinoqueen

    Casinoqueen Low-Roller

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    I go through RMS to get my 30% back (a bit to lazy to do it myself). RMS told me last year that they now need the ITIN # on the 1042 form. I took my ITIN number to Vegas with me, ended up with 6 or 7, 1042 forms that trip. Each time I was issued one I asked the attendent to make sure the ITIN number has been included on the form.

    They told me "NO". They don't do that and they won't start doing it either. They said if I want the # on the form that I am to write it down myself. There was nothing I could do to make them understand that it was to be typed on the form, they disagreed and refused. This was at Flamingo and Venetian.

    So after I got home I hand wrote on all the forms the ITIN #. Submitted them to RMS for my refund in Jan 2015. I just emailed RMS this week and asked for the status of the refund. They said due to some new rules that my refund will not be processed for 6 to 8 month through IRS.

    Don't know if its because the ITIN # was hand written or if it has something to do with other new IRS rules. Either way not impressed that the casinos refused to type the number on the 1042 form and not impressed that it now takes so long to get the refund back.
     
  4. starlight0229

    starlight0229 Tourist

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    US citizens and residents do not receive a 1042-S. That a form that is specifically for non-resident withholding. I'm not surprised you waited an hour on hold, actually I'm surprised it was only that long. The US tax deadline is only 8 days away, it's a very busy time for the IRS. Residents receive a W2G and I believe that it is standard that it includes the taxpayer's SSN, as the ones I have seen for clients all include it. Hopefully the IRS realizes that they're creating more work for themselves with this new requirement and change their minds (they did so recently with a business filing requirement that they reduced significantly when they realized the amount of hours that were going to be required from the agency).
     
  5. westcanguy

    westcanguy Low-Roller

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    Newmans, You're correct that you really don't need an ITIN before you get a handpay unless you've worked down there. The first time I got a 1042-S, I used a tax service and they applied for my ITIN on my behalf. The application is a one page form called a W-7. You can view the form online at the IRS website. It doesn't look too complicated. I suppose my warning was more for those who already have an ITIN number. I know there are a few of us on here.
     
  6. westcanguy

    westcanguy Low-Roller

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    Casinoqueen, did you happen to talk to your host(if you have one)? My host works out of the Flamingo and I'll be there a the end of the month. I think I'll write him and ask what he has to say about this and your situation as well because I don't need that hassle. If they want our action, it shouldn't be too difficult to type in a ITIN number. Would go a long way in keeping us coming back. I wonder if MLife is as stubborn.
    The agent I talked to at the IRS says that we have to be patient. He said they realize our situation but they need to check that the casino has actually remitted withholding and that takes time.
     
  7. westcanguy

    westcanguy Low-Roller

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    Thanks for the clarification Starlight. I guess it's just us "lucky Canadians" who get to deal with this.
     
  8. newmans

    newmans VIP Whale

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    Question
    You get a typed 1042S? I've only ever gotten a hand written form from the floor man. They required ID and I provided a driver's license. They write my driver's license # on the 1042s.
     
  9. westcanguy

    westcanguy Low-Roller

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    I haven't ever gotten typed 1042S but I'm sure going to try and find out if I can. I had to give my driver to them as well but they put my full address in there. Nothing else
     
  10. gambler

    gambler VIP Whale

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    Thanks for the info guy. Last year my husband's return came back in a couple weeks. I sent mine in many weeks ago and have been wondering where it was at. As a first time tax filer, I had to apply for the ITIN as well. My husband has a number now and does carry it with him for hand pays in Vegas.

    When I got my handpay at Suncoast last year, they asked me for my Social Insurance Number. I wasn't carrying the card but wrote down the number on a piece of paper for them. They came back to me telling me my SIN was incorrect. (They have some method of checking if it's a valid number.) I had a look at what I'd written and insisted it was correct. They went away and tried punching the number in again but still told me it was wrong. They gave me back the piece of paper with the number written down and when I got home I checked and found it was correct. So giving them your SIN is still no guarantee of success.

    For anyone with an ITIN number, that's the number you want to memorize or carry with you, rather than relying on your SIN number. For first timers like me, we'll just have to expect our returns in the fall I suppose.

    Thanks for posting that info though. Without my SIN number being put on the form and not having an ITIN yet, I had no way of checking on "Where's my refund" to see the status of my return. Now I know to stop running to the mail box every day in eager anticipation!
     
  11. VegasChic-

    VegasChic- VIP Whale

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    I got one typed from Cosmo last year - I don't have an ITIN number yet, just doing the paperwork as we speak. I won't anticipate a cheque any time soon from the sounds of it - thanks for the heads up everyone!
     
  12. AlexS

    AlexS Tourist

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    Repair Regs?
     
  13. Julie888

    Julie888 High-Roller

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    This could be ugly if we lose the deductions my husband had taken off in our 2015 trip. Bad enough if we lose the 2014, but it was only a few hundred. He had some good wins in January.

    We've had ITINs for years and floor staff quit taking them long ago so we quit offering.

    Looking back at one of the forms my husband submitted, they typed that he didn't have an ITIn and put a default 9999999 number in.

    The taxman certainly wants to discourage Canadians tourists.
     
  14. starlight0229

    starlight0229 Tourist

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    Ha, yes. Busted ass trying to get our staff trained and filings done, only to have them issue that Rev. Proc. right after we finished preparing them.
     
  15. AlexS

    AlexS Tourist

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    Not to derail thread but the firm I work at did the same thing. We tried to get on the leading edge and file the before more clarification came out but them damn rev proc came out right before we were about to file. Were behind the ball now from all the time spent on this crap. Our billables are up though!
     
  16. starlight0229

    starlight0229 Tourist

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    Exactly! I was in charge of implementation and really sucks to put in all that work and have it be worthless (except for the clients with 481(a) adjustments). And on top of spending all the time on that early on everything else came in later than normal, so we're extra slammed right now and have put in way more hours than last year...
     
  17. casinotaxrebate

    casinotaxrebate Newbie

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    The latest information we have on this is as follows: (this is from conversations with IRS employees and is not an official announcement)
    1. When you initially file in January they keep the 1040nr with 1042s slips offline and this is why you get the error message "not found did you make a mistake"
    2. When they load your tax return into the system later the return generates an automatic freeze code that freezes it until 168 days past June 15th or November 30th
    3. The IRS waits until the casino sends in their copy of the 1042s slip which is due March 15th, however the casino can extend this until May 15th if they elect to do so, but most send this info daily so I doubt it.
    4. Then the IRS assign document locator numbers to the electronically filed 1042s slips automatically and manually filed 1042s slips by hand. (only casinos with less than 250 slips can do it manually , so really .00001 % of slips.
    5. This information is imported into a database mining system called E-trak so that the IRS can match your tax return slip to the slip sent in by the casino to verify that the slip is real and accounted for by the withholding the casino sent in
    6. Once in the E-Track system an IRS agent can input the Tax Identification number of the casino with your name and see the identical slip on their screen. Your slip is now verified. (We have done this over the phone with agents in Philadelphia before and literally only takes a minute or two.
    7. The agent can either release your refund or wait until the freeze code expires November 30th to allow your refund to release. The IRS has until December 12th to issue your refund without paying interest.
    8. It appears they won't start verifying the tax slips until at least June 15th
    9. earliest cheques should be issued July - September but this is an educated guess as they could wait until November 30th (but hopefully you guys will put pressure on the IRS and they won't do that)
    10. 95% of this mess could be resolved if the casino were to put your ITIN on the 1042-s they issue and associate that slip to your ITIN in their system - it would be much easier and faster for the IRS to verify your tax slip if this number was on the slip.
     
  18. Jordan

    Jordan Caveman

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    I received hand pays last year from several casinos (Wynn, Cosmo, Aria, Paris, Planet Hollywood and Flamingo), For me it was a split down the middle (Wynn, Aria and Cosmo were typed, the rest (CET casino's) were hand written!
     
  19. westcanguy

    westcanguy Low-Roller

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    Much thanks, casinotaxrebate, for some great insight. It looks like Canadians are in for a long wait for refunds. I would imagine that Canadians will be more selective where they play in the future.
     
  20. Royal Flusher

    Royal Flusher Savvy Gambler

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    Thanks for posting here.

    I wish I had seen this thread a week ago - I just filed 8 US tax returns for 2011, 2012, 2013 and 2014.

    My question is - do these delays apply to returns from prior years?

    My other question is - does the new rule apply to prior years? I think I saw one 1042-S without an ITIN on it.
     
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