Canadians Are Entitled To A Recovery Of Casino Taxes
Here’s something to chew on: Canadians pay millions of dollars in US taxes. Canadians are assessed the IRS winnings tax on their US-based gambling jackpots. Canadians are legally entitled to pursue an IRS tax recovery and a refund of the US gambling tax. Yet the vast majority of these Canadians is unaware of, or simply gives up hope of a recovery of casino taxes . American gamblers are charged the IRS winnings tax too, yet regularly pursue a recovery of casino taxes in their yearly tax returns. Sound frustrating? It is true, and thousands of Canadian gamblers unjustly reward Uncle Sam every year when they abstain from an IRS tax recovery .
When Is The IRS Winnings Tax Charged?
The IRS Winnings Tax is taken off your gambling winnings whenever the jackpot goes above a certain minimum threshold. The threshold for the IRS winnings tax is dependent on the game. For slot machine jackpots and bingo jackpots, the IRS winnings tax takes effect at $1200US. For keno jackpots, the IRS winnings tax takes effect at $1500US. For horse racing wins, the winning ticket must be at least $600US more than the amount of the original wager, and also must have paid at least 300 times the amount of the original wager. Sound complicated? It is. The various rules regarding the IRS winnings tax are complicated and difficult to comprehend. The rules regarding any possible recovery of casino taxes are similarly convoluted.
Attaining A Refund Of US Gambling Tax
agen sbobet 5rb The US tax code allows the tax on gambling winnings to be reduced by the gambler’s corresponding gambling losses. Thus any gambler with ANY US-based gambling losses can receive a partial or full refund of his/her IRS winnings tax. If the gambling losses are smaller than the gambling winnings, the gambler will receive a partial refund of US gambling tax. If the gambling winnings are equal to, or larger than the gambling winnings, the gambler will receive a FULL refund of US gambling tax. Since most gamblers will have losses that are at least as large as the gambling wins, these gamblers are legally entitled to a full refund of US gambling tax.
Pursuing An IRS Tax Recovery
As said earlier, dealing with the IRS is not an easy task. It is made worse when a non-American is attempting to pursue an IRS tax recovery. US citizens have a rough enough time with the IRS. Non-Americans, including Canadians have a worse time when dealing with the IRS. The IRS is not answerable to non-Americans, and they have little incentive to provide cogent information. The IRS winnings tax represents a lot of income to the IRS, and Canadians who attempt to obtain an IRS tax recovery for themselves may face a gauntlet of conflicting information and unreasonable demands. Will you be willing to wait in line at the IRS office and/or submit your original passport by mail and let the IRS keep it for several months at a time? You may have to do that if you deal with the IRS while attempting an IRS tax recovery.
An Easier Way To Obtain An IRS Tax Recovery
Largely in response to complaints, and to deliver better service standards, the US Government has licensed a small group of firms to act as certifying acceptance agents. Certifying acceptance agents are well versed with US tax laws and are verified to have the utmost in professional standards. Certifying acceptance agents can act on behalf of Canadian gamblers in their dealings with the Internal Revenue Service.