WSOP vs. IRS in foreign winning tax situation
For those of you who don't know, the US requires the WSOP to withhold 30% in taxes for any foreign winner to where their country of origin doesn't have a tax treaty with the US.
Unfortunately, it appears that the 2015 PATH (Protecting Americans from Tax Hikes) Act might prevent the WSOP from honoring these tax treaties this year. The IRS just sent Vegas casinos letters, informing them that they can no longer issue their own ITINs (Individual Taxpayer Identification Numbers), and that such numbers must be issued by certified IRS agents.
Russ Fox wrote an article explaining this today: http://www.taxabletalk.com/2017/02/1...r-issue-itins/
However, the WSOP disagrees!
So who is right?
Well, if the IRS is correct, international players are screwed, unless they already hold valid ITINs. This is because there are very few foreign-based IRS agents, and the applicant must appear in person and then wait 2 months. Therefore, any non-US player showing up for the WSOP will not get his in time for any events, even if he applies immediately at the beginning of the WSOP.
It still remains to be seen whether the WSOP will be admonished by the IRS for this, and if they will still issue ITINs on their own.
