ITIN - Tax Numbers in USA

[Harry Demetriou]

Hi all - sorry I haven't posted anything for a while but I'm just a fat, lazy, balding bastard these days but as they say better late then never.

Someone asked a question about tax numbers elsewhere on the net to which I replied so thought that it would be appropriate for me to post something here as many of you may find this useful particularly with the WSOP coming up.

http://www.irs.gov/individuals/article/0,,id=96287,00.html

This link is useful as it explains a lot about how to get an Individual Tax Identification Number in the USA and how things have changed.

By having one you do not get any of your winnings witheld for the US tax office and get paid out in full.

In the past The Bellagio Poker team have been very helpful in getting ITIN's for winning poker players but Harrah's and the WSOP have not bee helpful at all as they leave you in isolation to sort things out for yourself.

Liability for tax itself depends on a few things but mainly on how many days a year you spend in The USA and whether or not your country has a tax treaty with The USA but as pointed out above if you have an ITIN then its up to you to sort the tax out directly with the IRS (Internal evenue Services) -US Tax office directly as you will be paid all your winnings.

If you are subjected to a tax withold then you will have 30% of your winnings dducte and forwarded to the IRS on your behalf.

A few weeks ago I was in the Las Vegas tax office asking about getting an ITIN in advance for friends thinking about going to the WSOP and they told me that the rules had changed.

Now apparently you have to submit a tax retiurn in the USA after which you will be issued with an ITIN whilst in the past you could apply for one in advance. You will also have to complete a form W-7 and give a cpy of your passport to get one but the process is still relatively simple but can take up to around 10 weeks but often it is processed quicker.

Even if you have tax witheld and you do not have an ITIN you can get the tax back later if you are not liable for the tax but it will just take time to sort everything out (NB Australians really ahve ahard time with poker tournament tax as there is no tax treaty with Australia although they may well be introducing one soon or may have done so already quite rcently).

So if you are going to the WSOP (I assume they will not do anything to help overseas players in this area once again this year) and think you are likely to make a cash please go and read the info available in the link above. It may well help you from a lot of grief at some future date.

BTW You have no problems at all if you currently have an ITIN obtained in the past and I am not an expert on this subject but hope the link may help some of you in th future.

[tikay]

Hi Harry,

Thanks for Posting this - you promised me in Monte Carlo you'd Post on blonde again when you found time, so I knew you would.

fat, lazy, balding bastard

That's unfair. Portly, plump, but certainly not fat......

Now, do me another favour please - take a look at our Poker Hand Analysis Board, please. Posts & opinions from the likes of you, Dave Colclouigh & Marc Goodwin on PHA are golden. It's here.....

http://blondepoker.com/forum/index.php?board=24.0

Finally, given all the fuss in the USA about the legality of owning & running Online Cardrooms, do you think the owners of blonde will face any problems - other than doing their money - at this year's WSOP?

Oh, & Good Luck in the Bellagio $25k. blonde will be Live Updating, so if Jen needs any access help, I know you'll help out, as you promised.

Take care now Harry.

[redsimon]

Hi Harry,

Thanks for Posting this - you promised me in Monte Carlo you'd Post on blonde again when you found time, so I knew you would.

fat, lazy, balding bastard

That's unfair. Portly, plump, but certainly not fat......

Now, do me another favour please - take a look at our Poker Hand Analysis Board, please. Posts & opinions from the likes of you, Dave Colclouigh & Marc Goodwin on PHA are golden. It's here.....

http://blondepoker.com/forum/index.php?board=24.0

Finally, given all the fuss in the USA about the legality of owning & running Online Cardrooms, do you think the owners of blonde will face any problems - other than doing their money - at this year's WSOP?
Oh, & Good Luck in the Bellagio $25k. blonde will be Live Updating, so if Jen needs any access help, I know you'll help out, as you promised.

Take care now Harry.

As long as Blonde's poker room is out of bounds to USA residents I can't see how the UIGEA affects you...

[Woodsey]

Hi Harry,

I've asked this question few times before but never had a proper answer. If you get lucky enough to have a big win, how do you get the money home? Bank transfer?Cheque? if its cheque do UK banks take cheques in US dollars?

Thanks in advance

[Harry Demetriou]

Hi Harry,

I've asked this question few times before but never had a proper answer. If you get lucky enough to have a big win, how do you get the money home? Bank transfer?Cheque? if its cheque do UK banks take cheques in US dollars?

Thanks in advance

If you are going to need US dollars in the future then open a US dollar account if you haven't got one already with someone like Bank of America or Citibank etc etc and put the winnings into that account via cheque

You can also ask the casino to wire the money to an offshore bank account held in your name and they are nearly always prepared to do this.

If you are going to have to convert it into another currency like Euros or Sterling then you are going to have to do some work.

A cheque will be taken by UK banks but it could take a while to clear so you are better off asking the casino where you won the money to wire it to your bank. Problem is that they (your bank) is likely going to rip you off for the exchange rate so negotiate a special rate with them before hand to get as close to spot rate as you can before the money comes over.

An alternative solution is to have the money wired to your stock broker (if you have one) as they will usually deal in multiple crrencies and as such are likely to give you an exceptionally good exchange rate almost exactly or very close to the spot rate.

Then you could ask other people you know to change it for you as close to spot rate as you can as others often need Dollars and you will obviously need Euros and/or uk Pounds but the problem then is if you have won large amount not everyone will want to take so much in Dollar form from you. Then there is always the problem of trusting that person if they say they will give it to you in the UK.

You can also take the money in cash form and brng it back to the UK .It is NOT illegal for you to carry cash on you between the UK and USA but you have a duty to declare it. You may or may not get some grief for having so much cash on you from ignorant immigration officials but I assure you that they cannot take it from you as you have done nothing illegal as long as you declare it on leaving the USA and arriving in UK. (amounts that have to be declared vry from country to country but for US anything over $10000 or equivalent in montary instruments or varying currency has to be decalred on arrival and departure).

[Ironside]

wow getting my winnings back from the 2010 ME will be harder than i thought

will $20,000,000 fit in my suitcase?

oh wait they will withhold 30% of that for tax cause i have no idea who to get audited (sounds painfull)

i'll get my "stockbroker" lol to sort it out when i get back

sometimes things goes right over the heads of us little guys

[Harry Demetriou]

Sorry forgot to mention

Re: Dollars - that you can also use various companies availble via the internet like Currencies Direct:

https://www.currenciesdirect.com

However I cannot personally vouch for them as I have ever used them.

Re: ITIN (US Tax Number)

Another solution I have thought about but do not know if it is a practical one but should work in theory is to go to a US Tax Office when you are next in The States and file a tax return for the past year and to declare that you had zero income in the USA and zero tax to pay. By doing this you are making a return and at the same time submit a W-7 so you can get an ITIN number.