Tax Season Opens This Thursday for Canadian Gamblers at the IRS
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For the vast majority of citizens who need to file a tax return in the United States, the tax season is officially open since January 29th. Indeed, the IRS began processing applications from its own citizens on this date, just as it opened the receipt of electronic applications for citizens from around the globe.
A Canadian winner who has been taxed at a casino in the United States must complete a 1040NR tax return to claim the credit to which he is eligible. The IRS has been accepting 1040NR reports electronically since 2016. But there is an unfortunate exception. It is specifically stipulated that claims including a 1042-S slip cannot be submitted via the online system and must therefore be sent in paper format. Modernity has not yet knocked on the door of the IRS for Canadian casino players!
It was clearly stipulated that the processing of paper applications would begin on February 15th, 2018. At GamblingTaxes.ca, we sent all our clients’ tax reports to be signed in anticipation of this date. The majority of players quickly collaborated. Therefore, we’re pleased that over 85% of the 2017 winners already have their envelope at the IRS, ready to be processed in the first wave. Once again this year, GamblingTaxes.ca clients will be the first to retrieve their money.
Our web-browsing customers often contact us to find out if they will receive their tax refund within three weeks of filing, as promised by the IRS for 9 out of 10 US citizens. Bad news compatriots, Canadian refunds are far from being a priority for the US Treasury! What to expect, then?
The answer is that no one really knows, since the IRS does not exactly have a constant speed of processing year after year. Legally, remember that your refund has until December 15, 2018 to be issued to you, without the IRS owing you any interest.
However, based on the 2016 and 2017 deadlines, refunds began in April for players already having an ITIN, with the majority of checks for those filing their first application arriving in late spring and early summer.
Are you asking for a refund of $ 5,000 or more? In 2017, the IRS put all these requests aside, sending a notice to everyone that a review period of up to six additional months would potentially be used. If this does not change the deadline of December 15th, these refunds have actually arrived later, the majority between September and December.
The staff cuts have not stopped at the IRS staff, so the speed of processing could suffer. On the other hand, this suggests a further decline in the audit rate, which continues to decline year after year.
We finally remind you that the official date to apply for a credit on the 2017 gambling win to ensure you receive your refund in 2018 is June 15th, 2018. You then have three years of prescription, which allows you to formally file a refund claim for a taxed gain in 2017 until June 15th, 2021 (the date your application is to be considered received by the IRS).
You were taxed at a casino in the United States? We remind you that we offer a turnkey solution to recover this money without having to contact the IRS yourself! Just start the process by filling out this contact form.