Under a set of international treaties, foreigners with gambling winnings in the US do not have to pay any tax on the proceeds though they do have to file a return. However, a casino accidentally remitted $5.2 million in winnings to the IRS on behalf of Irish citizen John P. McManus which has prompted a lawsuit after the IRS delayed in returning the money. After the mistake was discovered, McManus sought return of the tax payment and was close to a settlement when the case was transferred to another department. McManus’ lawyer stated they only seek the return of the tax and an end to the dispute. As of now, the IRS has no comment.
See Ashlea Ebeling, Irish Gambler John McManus Seeks $5.22 Million Tax Refund From IRS, Forbes, September 1, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
