My aunt is a Costa Rican citizen who won some money on a recent trip to Las Vegas. 3o% of the winnings were?

Question

withheld by the casino. How does she recover those winnings? Who could we contact to answer this. A IRS form 1042-S was filed by the casino. My aunt gave her address in Costa Rica. We would like to have it mailed to me in the US. We really would be greatful for any help on this matter.

Answer 1

The next time she comes to Las Vegas, tell her to stick to blackjack, baccarat, craps, roulette and big wheel.  None of those are subject to withholding.

Answer 2

Sorry, but that 30% is the proper tax for a non-resident alien with US sourced gambling winnings.  She's not entitled to any refund of it unless Costa Rica has a tax treaty with the US that says otherwise.  

Given that Costa Rica and the US have no extradition treaty and Costa Rica refuses to share income and banking information on US citizens who live or work there with the IRS, it's highly unlikely that any tax treaty would provide preferential treatment for her.

Answer 3

Unless she has some contact with the US obligating her to file a 1040-NR tax return, or if Costa Rica has a tax treaty with the US, that 30% is properly withheld.  It's possible that the amount of the wager(s) should have been deducted from the winnings before the 30% was calculated, and that was not done, but I think that's the default tax rate.