CMP - Issuing a 1042S

In situations where the winning player is a non-resident alien of the United States, a 1042S form must be issued instead of a W-2G or 1099.  The steps to issuing a 1042S are virtually identical except that federal tax withholdings must also be specified.

Gambling Winnings & Foreign Persons

Generally, nonresident aliens are subject to tax withholding in the amount of 30% of any gambling winnings – this includes residents of Mexico and Canada.

Any time withholding occurs, the patron should be advised that they may file Form 1040NR (U.S. Non-Resident Alien Income Tax Return) with the IRS.

Requirements to be Exempted From Tax Withholdings

In certain situations, non-resident aliens may be exempted from the 30% tax withholding if they can meet ALL of the following criteria:

• Must provide valid identification that shows they are from one of the designated treaty countries (see below), AND
• They must possess an Individual Taxpayer Identification Number (ITIN), AND
• They must provide an IRS Form W-8BEN

If any of the above conditions is not met, or if you have any doubts, withhold the 30%.

Casino Marketplace Procedures

To issue a 1042S for a player, follow these steps:

1. Locate and select the player account in CMP
2. From the jump to drop-down menu, select Issue 1042S, this will open the Issue 1042S window
3. Click the Identification tab and verify that the patron Address and Citizenship is accurate
4. Select the History tab to verify recent jackpot activity and to determine if Title 31 regulations apply
5. Click the Tax Form tab
6. Enter information in the following fields based on departmental procedures:
   • Document
   • WagerLocn
   • Wager
   • Gross Win
7. In the section labelled Tax Withholding, select 30%, this will populate the Federal Tax Withheld field​​​​​​​
8. If applicable, click the Pay Method button to make payout changes based on customer preference and/or Departmental procedure
9. Verify that the Federal Tax withheld is 30% of the Gross Win.  NOTE that taxes should always be rounded up to the next whole dollar amount.
10. Click Submit

Treaty Countries

To review images or save/download/print a copy of this Job Aide, please select the pdf attachment.