Refund Issues with your 1042-S

When we applied for our ITINs, we received a card. I take that card with me and hand it over with my ID when I hit a jackpot. Almost always the ITIN is on the 1042-S.

To a previous poster, I'm pretty sure the 1042-S stipulates where the SIN/ITIN goes!

 

This is an excellent point. What are you supposed to do if you have not got an ITIN on your first jackpot?

Are you then SOL for the refund?

 

It sounds to me like you gave Suncoast your Canadian SIN number. This is not the same thing as a US SIN number and when they ran it in the US system, it would come up as invalid.

Anyway, you need an ITIN number and that's what you should provide when you win.

 

Yes, it was my Canadian SIN I gave them. They asked if I had an ITIN (I don't yet) and then asked for my Canadian SIN number, saying they needed some sort of government identifier.

I just checked the receipt and see that although they said my SIN was not valid, they did put my SIN in the spot marked Recipient Code, then they came and asked for my BC Driver's License number which they put in the space marked Recipients U.S. tax number. No wonder it takes the U.S. awhile to sort out all the paperwork. My DL number has nothing to do with Recipients U.S. tax number.

 

If it is a prior year return it is also being frozen. The only things getting through are 1040x adjustments and tax deducted on a W2G because their filter is a 1040NR with 1042s slips. This also affects other types of returns not just gambling returns. Hockey players with income from the USA, dividends, property rentals with tax deducted etc etc. About 300,000 returns I would estimate. There are 600,000 NR returns filed annually about half have a SSN so maybe its W2 income and won't be touched. There are 2.5 million 1042s slips issued annually so yes a lot of returns. Corporate filers using 1120F forms with 1042s slips are also affected. There are 27,000 1120F corporate filers. So lets hope they have enough staff to do this in a timely manner.

 

Don't give them your Canadian SIN as it is similar to the SSN and we have had cases where it is the same as a US citizen and they think you are doing identity theft. Give your US ITIN.

 

No, just expect a long, long delay.

 

Already had big time gamblers say they are going to Monaco or Caribbean to gamble and staying far away from Vegas. From what we hear from the IRS they have a special unit to audit Canadian gamblers now, so prepare for a rough ride if your refund is over $10,000

 

Identity theft...well isn't that just great! Not the kind of memory I'm hoping to take from Vegas. Thanks for the info.

Sounds like the IRS changed the regulations last minute but another real problem is the casinos do not know how to properly fill out a form (typed vs written, number vs no number).

For an example, my husband got 3 hand pays last trip. At the first casino, he was playing on my player's card and could not produce his own player's card quickly enough for them (he'd left his card at home so would have had to go to the player's club for a replacement and they didn't want to wait for him to do that). I don't understand why they thought they couldn't pay him without a player's card but the solution they came up with was to issue the tax receipt in my name. That was fine by me so they gave me a typewritten form (good) with my DL number handwritten on the side (bad).

At the second casino where he got a hand pay, he gave his ITIN and they put in on the typewritten form (good). But even though the form was done correctly (typewritten form with his typewritten ITIN included), they forgot to withhold the tax and gave him the full amount of his winnings! (Even better - for us at least).

At the third casino (he was again using my player's card but it was a non issue to them), he gave his ITIN and received a handwritten form with his driver's license number written in the spot where the ITIN goes. Why they didn't put his ITIN in the spot where it specifically says "Recipient's U.S. tax identification number", I'll never know. We didn't question it at the time because we weren't aware of these new changes.

As casinoqueen mentioned above, it sounds like casinos seem to have an issue with including an ITIN on their forms.

So even if the US government clarifies exactly what it is that they want on the 1042-S form and whether it should be typed or handwritten, there are too many employees involved in the different casinos, and none of them are trained on how to fill out the form properly.

I think we might have to accept that waiting 9 months for a return is the new reality.

Anyhow, this is an informative thread. Next time I get a hand pay (if I've received my ITIN by then), I will ask for a type written form with only my ITIN on it. Ya, we'll see how that goes. I can see why big gamblers would go elsewhere.

Instead of the IRS spending money to audit Canadian gamblers, their money might be better spent educating the collectors of the tax at the source - the casinos. It would certainly streamline the process for the IRS but maybe that's not the real goal (I'll stop here so as not to get too political).

 

I'm not surprised to hear the big time gamblers are going elsewhere. I'm not interested in waiting 9-18 months(if you get a hand pay in January) for my refund either. I'm not a big time gambler but I normally go home with some forms. It's like a 30% penalty for being Canadian.
Maybe it's time to stay home and gamble. I love Vegas but not at a 30% premium for playing.

 

All this extra paperwork for the employees is going to make Canadians a liability to the casino. They're not too thrilled to see our DLs as it is.

 

I used to be a US resident (no green card), hence I do have SSN. But for the last 4-5 years, I'm abroad, back at my home country. So, I don't file taxes anymore. I have no idea what to do if I ever win a jackpot. Do you guys have any idea?

To avoid lots of paperwork and hassle and potential monetary loss; being the low-roller that I am, I always play small stakes. On VP for example, I never play more than quarter denom to keep the top award at $1000. And my slot spins are between $0.20-$0.50.

 

I would lay the blame on the poorly trained employees of the casino creating 1042s that are incomplete and poorly filled out which in turn makes verifying the slip manually without the number on it nearly impossible.

 

That's the truth right there.

Just thought I'd mention that I did receive my ITIN a couple days ago so it's a start. At least we now know that they've started processing the first page of some Canadian returns. Maybe there is hope for receiving the cheques before November.

Now that I have a number, I'll be sure to mention to the casino people filling out the form to make sure my ITIN gets on the form. It's worth a try anyhow!