IRS CCA: Clarifying Tax Implications for Nonresident Alien Winnings from Sports Book Betting (IRC §3402)

The Chief Counsel’s Office advised on the proper withholding and reporting treatment for sports betting winnings paid to a nonresident alien individual. The guidance provides that such winnings are subject to 30 percent withholding under I.R.C. §1441(a) rather than the domestic gambling withholding rules under I.R.C. §3402(q). The winnings must be reported on Forms 1042 and 1042-S, not Form W-2G. [CCA 202547016]

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