26 U.S.C. § 4411 — Imposition of tax

Page 2974 TITLE 26—INTERNAL REVENUE CODE § 4403 (Aug. 16, 1954, ch. 736, 68A Stat. 525; Pub. L. 85–859, title I, § 152(b), Sept. 2, 1958, 72 Stat. 1305; Pub. L. 89–44, title IV, § 405(a), title VIII, § 813(a), June 21, 1965, 79 Stat. 149, 170; Pub. L. 94–455, title XII, § 1208(a), Oct. 4, 1976, 90 Stat. 1709; Pub. L. 95–600, title V, § 521(c)(1), Nov. 6, 1978, 92 Stat. 2884.) Editorial Notes REFERENCES IN TEXT Section 4462, referred to in par. (2), was repealed by Pub. L. 95–600, title V, § 521(b), Nov. 6, 1978, 92 Stat. 2884. AMENDMENTS 1978—Par. (2). Pub. L. 95–600 substituted ‘‘(as defined in section 4462 as in effect for years beginning before July 1, 1980)’’ for ‘‘with respect to which an occupa- tional tax is imposed by section 4461’’ and ‘‘(as so in ef- fect), or’’ for ‘‘if an occupational tax is imposed with respect to such device by section 4461, or’’. 1976—Par. (3). Pub. L. 94–455, among other changes, substituted in heading ‘‘State-conducted lotteries, etc.’’ for ‘‘State-conducted sweepstakes.’’, and struck out provision that no tax be imposed on any wager placed in a sweepstakes, wagering pool, or lottery in which the ultimate winners are determined by the re- sults of a horse race. 1965—Par. (2). Pub. L. 89–44, § 405(a), substituted ‘‘sec- tion 4462(a)(2),’’ for ‘‘section 4462(a)(2)(B),’’. Par. (3). Pub. L. 89–44, § 813(a), added par. (3). 1958—Par. (2). Pub. L. 85–859 inserted provisions ex- empting from the tax amounts paid to operate a device described in section 4462(a)(2)(B), if an occupational tax is imposed with respect to such device by section 4461 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–600, title V, § 521(d)(2), Nov. 6, 1978, 92 Stat. 2885, provided that: ‘‘The amendments made by sub- sections (b) [repealing sections 4461 to 4464 of this title] and (c) [amending this section and section 4901 of this title] shall apply with respect to years beginning after June 30, 1980.’’ EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–455, title XII, § 1208(c)(1), Oct. 4, 1976, 90 Stat. 1709, provided that: ‘‘The amendment made by subsection (a) [amending this section)] shall apply with respect to wagers placed after March 10, 1964’’. EFFECTIVE DATE OF 1965 AMENDMENT Pub. L. 89–44, title VII, § 701(c)(2), June 21, 1965, 79 Stat. 157, provided in part that: ‘‘The amendments made by sections 403 [amending sections 4461 and 4462 of this title] (relating to occupational tax on coin-oper- ated devices) and 404 [repealing sections 4471 to 4474] (relating to occupational tax on bowling alleys, billiard and pool tables), and by subsections (a) [amending this section], (b) [amending section 4901 of this title] and (d) [amending section 4914 of this title] of section 405 (re- lating to technical and conforming changes) shall apply on and after July 1, 1965.’’ Pub. L. 89–44, title VIII, § 813(b), June 21, 1965, 79 Stat. 170, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply with re- spect to wagers placed after March 10, 1964.’’ EFFECTIVE DATE OF 1958 AMENDMENT Pub. L. 85–859, title I, § 152(c), Sept. 2, 1958, 72 Stat. 1305, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘The amendments made by subsections (a) and (b) [amending this section and sec- tion 4462 of this title] shall take effect on the effective date specified in section 1(c) of this Act [the first day of the first calendar quarter beginning more than 60 days after Sept. 2, 1958]. In the case of the year begin- ning July 1, 1958, where the trade or business on which the tax is imposed under section 4461 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] was com- menced before such effective date, the tax imposed for such year solely by reason of the amendment made by subsection (a)— ‘‘(1) shall be the amount reckoned proportionately from such effective date through June 30, 1959, and ‘‘(2) shall be due on, and payable on or before, the last day of the month the first day of which is such effective date.’’ § 4403. Record requirements Each person liable for tax under this sub- chapter shall keep a daily record showing the gross amount of all wagers on which he is so lia- ble, in addition to all other records required pur- suant to section 6001(a). (Aug. 16, 1954, ch. 736, 68A Stat. 525.) § 4404. Territorial extent The tax imposed by this subchapter shall apply only to wagers (1) accepted in the United States, or (2) placed by a person who is in the United States (A) with a person who is a citizen or resi- dent of the United States, or (B) in a wagering pool or lottery conducted by a person who is a citizen or resident of the United States. (Aug. 16, 1954, ch. 736, 68A Stat. 525.) § 4405. Cross references For penalties and other administrative provisions applicable to this subchapter, see sections 4421 to 4423, inclusive; and subtitle F. (Aug. 16, 1954, ch. 736, 68A Stat. 526.) Subchapter B—Occupational Tax Sec. 4411. Imposition of tax. 4412. Registration. 4413. Certain provisions made applicable. 4414. Cross references. § 4411. Imposition of tax (a) In general There shall be imposed a special tax of $500 per year to be paid by each person who is liable for the tax imposed under section 4401 or who is en- gaged in receiving wagers for or on behalf of any person so liable. (b) Authorized persons Subsection (a) shall be applied by substituting ‘‘$50’’ for ‘‘$500’’ in the case of— (1) any person whose liability for tax under section 4401 is determined only under para- graph (1) of section 4401(a), and (2) any person who is engaged in receiving wagers only for or on behalf of persons de- scribed in paragraph (1). (Aug. 16, 1954, ch. 736, 68A Stat. 527; Pub. L. 93–499, § 3(b), Oct. 29, 1974, 88 Stat. 1550; Pub. L. 97–362, title I, § 109(b), Oct. 25, 1982, 96 Stat. 1731.) Page 2975 TITLE 26—INTERNAL REVENUE CODE § 4421 Editorial Notes AMENDMENTS 1982—Pub. L. 97–362 designated existing provisions as subsec. (a), in subsec. (a), as so designated, substituted ‘‘liable for the tax imposed’’ for ‘‘liable for tax’’, and added subsec. (b). 1974—Pub. L. 93–499 substituted ‘‘$500’’ for ‘‘$50’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–362, title I, § 109(c)(2), Oct. 25, 1982, 96 Stat. 1731, provided that: ‘‘The amendment made by sub- section (b) [amending this section] shall take effect on July 1, 1983.’’ EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93–499 effective Dec. 1, 1974, and applicable only with respect to wagers placed on or after such date, see section 3(d)(1) of Pub. L. 93–499, set out as a note under section 4401 of this title. PERSONS ENGAGED IN ACTIVITIES ON DECEMBER 1, 1974, REQUIRING PAYMENT OF TAX; PERSONS PAYING TAX AND REGISTERING BEFORE DECEMBER 1, 1974 Pub. L. 93–499, § 3(d)(2), Oct. 29, 1974, 88 Stat. 1551, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(A) Any person who, on December 1, 1974, is engaged in an activity which makes him liable for payment of the tax imposed by section 4411 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as in effect on such date) shall be treated as commencing such activity on such date for purposes of such section and section 4901 of such Code. ‘‘(B) Any person who, before December 1, 1974.— ‘‘(i) became liable for and paid the tax imposed by section 4411 of the Internal Revenue Code of 1986 (as in effect on July 1, 1974) for the year ending June 30, 1975, shall not be liable for any additional tax under such section for such year, and ‘‘(ii) registered under section 4412 of such Code (as in effect on July 1, 1974) for the year ending June 30, 1975, shall not be required to reregister under such section for such year.’’ § 4412. Registration (a) Requirement Each person required to pay a special tax under this subchapter shall register with the of- ficial in charge of the internal revenue district— (1) his name and place of residence; (2) if he is liable for tax under subchapter A, each place of business where the activity which makes him so liable is carried on, and the name and place of residence of each person who is engaged in receiving wagers for him or on his behalf; and (3) if he is engaged in receiving wagers for or on behalf of any person liable for tax under subchapter A, the name and place of residence of each such person. (b) Firm or company Where subsection (a) requires the name and place of residence of a firm or company to be registered, the names and places of residence of the several persons constituting the firm or company shall be registered. (c) Supplemental information In accordance with regulations prescribed by the Secretary, the Secretary may require from time to time such supplemental information from any person required to register under this section as may be needful to the enforcement of this chapter. (Aug. 16, 1954, ch. 736, 68A Stat. 527; Pub. L. 94–455, title XIX, § 1906(b)(13)(I), Oct. 4, 1976, 90 Stat. 1835.) Editorial Notes AMENDMENTS 1976—Subsec. (c). Pub. L. 94–455 substituted ‘‘the Sec- retary may’’ for ‘‘he or his delegate may’’. Statutory Notes and Related Subsidiaries PERSONS PAYING TAX AND REGISTERING BEFORE DECEMBER 1, 1974 Persons registered before Dec. 1, 1974 under this sec- tion (as in effect on July 1, 1974) for the year ending June 30, 1975, not required to reregister under this sec- tion for such year, see section 3(d)(2) of Pub. L. 93–499, set out as a note under section 4411 of this title. § 4413. Certain provisions made applicable Sections 4901, 4902, 4904, 4905, and 4906 shall ex- tend to and apply to the special tax imposed by this subchapter and to the persons upon whom it is imposed, and for that purpose any activity which makes a person liable for special tax under this subchapter shall be considered to be a business or occupation referred to in such sec- tions. No other provision of sections 4901 to 4907, inclusive, shall so extend or apply. (Aug. 16, 1954, ch. 736, 68A Stat. 527.) § 4414. Cross references For penalties and other general and administra- tive provisions applicable to this subchapter, see sections 4421 to 4423, inclusive; and subtitle F. (Aug. 16, 1954, ch. 736, 68A Stat. 527.) Subchapter C—Miscellaneous Provisions Sec. 4421. Definitions. 4422. Applicability of Federal and State laws. 4423. Inspection of books. 4424. Disclosure of wagering tax information. Editorial Notes AMENDMENTS 1974—Pub. L. 93–499, § 3(c)(2), Oct. 29, 1974, 88 Stat. 1551, added item 4424. § 4421. Definitions For purposes of this chapter— (1) Wager The term ‘‘wager’’ means— (A) any wager with respect to a sports event or a contest placed with a person en- gaged in the business of accepting such wa- gers, (B) any wager placed in a wagering pool with respect to a sports event or a contest, if such pool is conducted for profit, and (C) any wager placed in a lottery con- ducted for profit. (2) Lottery The term ‘‘lottery’’ includes the numbers game, policy, and similar types of wagering. The term does not include—