UK resident trying to claim back withholding taxes...

Hi guys

So glad I found this forum, since visiting Vegas for the first time in 2011 I am about to go on my fourth trip in a couple weeks time!

On my last trip I happened to have some good luck and hit a progressive on the slots (details to follow later!)

Anyway, at the time of the win, 4-5 months ago, the casino rep took all my documents etc and applied for an ITIN on my behalf. I had a third of the initial payment withheld (should have been $14,000 roughly but was paid about $10,000) and a third of the lump sum prize money.

I haven't heard anything from the IRS and I can't get through to their office in London.

When I eventually do get my ITIN, is there anywhere that spells out exactly what I have to do to claim back the withholding? I've been searching for the past few months but so far I can't find anything on the subject that is remotely helpful.

Any pointers would be very much appreciated!

 

I hit a handpay in the Cosmo in mid August and they took my documents etc to apply for a tax number and paid me in full after maybe a 30-45min wait.

I have since received the paperwork from the US taxman, to my London home, with my number etc on.

Sounds like you may have trouble getting that cash to me.

What casino was this in if i may ask?

 

I hate to say this, but there's a sort of symmetry to your problem. I can't get back my VAT, either. Not from the UK, and not from Canada.

I have given up. Perhaps you will fare better.

 

Vinny if you are a UK resident and do not pay taxes to US than the casino should not have held back any of your winnings.

There is an tax agreement between US and UK that covers this.

Canada does not have this same agreement, Canadians must have the withholding but can file to get it back by proving losses.

 

Thanks for the responses!

It wasn't paid out by the casino as it was the Wheel of Fortune progressive (so paid out by the owner of the machines)

 

As a UK resident I had 30% of a 5k jackpot withheld, though there was some debate at the time whether I should have just been given all of the cash. I was given a 1042-S and left to my own devices to pursue the rest.

My intention is to follow the following procedure that I saw posted online:

"1) Fill in a W7,and send to your local IRS with your passport and a copy of the 1042-S that you would have been given when your win was paid. ( there are local offices usually attached to embassies). If you are claiming tax back on winnings then you are claiming against exemption 2(d), gambling winnings, treaty number 22, this information has to be stated on your W7.

2) Wait 8-10 weeks for your ITIN to be sent to you.

3) complete a tax return after the end of your current tax year (US tax year) for me this is 31st December 2011, you need to send a copy of the ITIN and your original 1042-S to the IRS, again your local office is fine.

4) Wait for your cheque !"

Good luck in your quest!

 

I hasten to add the party posting that had not received their cheque yet!

Having now looked at the instructions for completeing the W7, my new plan is to wait until the end of the year, then submit form 1040NR (essentially a non-resident tax return) along with form W-7 and the 1042-S.

I don't know what the norm is, but I had the impression the casino either gives you all of the money and tidies up the paperwork to that effect, or issues the 1042-S in ignorance (or because it is easier for them / has other benefits like keeping your cash in their accounts). I understand it can take a while to get an ITIN, but if you don't get it by year-end, you might look for plan B!

 

Thanks Chris - I read the explanatory notes to the 1042-S and the paying agent (of the withholding) is only obliged to send out the 1042-S to the recipient by year end (March I think)...

This gives me a bit of time to get my ITIN, and then maybe E-File my tax return next year.

Seems like an awfully long process!

 

vinny here are a couple of exerts from "Canadians and taxes" which you can search if you want.

I am from the UK and we are exempt from the tax as well. I had a win at the
Venetian of $4,000 and THEY kindly did all the form filling for me and while they could only pay me less the tax they posted me a cheque together with an exemption form after about three weeks. I now always carry the form when I come over as proof that I am tax free and have no problem in collecting the full amount which I HOPE TO USE AGAIN NEXT WEEK !!

Sorry for not coming back sooner but while we are sleeping, you are playing.. The document I have is an IRS Form v-7 and gives a ITTN Number which always appears on any receipt the casino gives me (when I win big). It sounds that we lucky compared to our Canadian friends as my form dated in 2005 is for life... The other number states Form W-7.

I hope this helps you.

Richard