IRS Says Foreign Citizen’s Sports-Bet Wins Need 30% Withholding

A foreign citizen’s winnings on sports betting are subject to 30% tax withholding and must be reported to the IRS, the agency says.

Generally, only larger sports-betting winnings are subject to withholding, and the casino at which the unidentified bettor gambled would have been correct in not issuing a Form W-2G to the taxpayer for reporting and withholding of gambling winnings if the taxpayer hadn’t been a foreign national, the IRS said.

But gambling winnings paid to a foreign person that are not effectively connected with a US trade or business are subject to 30% withholding under a different provision, ...