Fillable Form 730 - Monthly Tax Return For Wagers (Page 3 of 4) in pdf

Form 730 (Rev. 1-2008)

Page

Section references are to the Internal Revenue Code unless

Taxable wagers include those placed:

otherwise noted.

On a sports event or contest with a person engaged in

the business of accepting wagers on a sports event or

General Instructions

contest.

In a wagering pool on a sports event or contest if the

Who must file. You must file Form 730 and pay the tax on

pool is conducted for profit.

wagers under section 4401(a) if you:

In a lottery conducted for profit, including the numbers

Are in the business of accepting wagers,

game, policy, punch boards, and similar types of wagering.

Conduct a wagering pool or lottery, or

Sports event. A sports event includes every type of

Are required to be registered and you received wagers

amateur, scholastic, or professional sports competition,

for or on behalf of another person but did not report that

such as auto racing, baseball, basketball, billiards,

person’s name and address.

bowling, boxing, cards, checkers, cricket, croquet, dog

Use Form 11-C, Occupational Tax and Registration

racing, football, golf, gymnastics, hockey, horse racing,

Return for Wagering, to register.

lacrosse, rubgy, soccer, squash, tennis, track, tug of war,

Exempt organizations. Organizations exempt from

and wrestling.

income tax under section 501 or 521 are not exempt from

Contest. A contest is any competition involving speed,

the tax on wagering or the occupational tax. However, see

skill, endurance, popularity, politics, strength, or

Lottery below for an exception.

appearance, such as elections, the outcome of nominating

Completing Form 730. If you are not using the

conventions, dance marathons, log-rolling contests,

preaddressed Form 730, enter your name, address,

wood-chopping contests, weightlifting contests, beauty

employer identification number (EIN), and the month (MM)

contests, and spelling bees.

and year (YYYY) for which this form is filed.

Wagering pool. A wagering pool conducted for profit

Rounding. You may round amounts to whole dollars. If

includes any method or scheme for giving prizes to one or

you do round, leave the entry for the cents amounts blank.

more winning bettors based on the outcome of a sports

You can drop amounts that are less than 50 cents, and

event, a contest, or a combination or series of these events

increase amounts that are 50 cents or more to the next

or contests if the wagering pool is managed and

whole dollar. If you do round, do so for all amounts. But if

conducted for the purpose of making a profit. A wagering

you have to add two or more amounts to figure the amount

pool or lottery may be conducted for profit even if a direct

to enter on a line, include cents when adding and only

profit does not occur. If you operate the wagering pool or

round off the total.

lottery with the expectation of a profit in the form of

When to file. If you are liable for the tax, file Form 730 for

increased sales, attendance, or other indirect benefits, you

conduct it for profit.

each month by the last day of the month following the

month for which you are reporting taxable wagers. The IRS

Lottery. This includes the numbers game, policy, punch

will not send you a notice that a return is due. Once you file

boards, and similar types of wagering. In general, a lottery

a return reporting the tax, the IRS will mail you a Package

conducted for profit includes any method or scheme for

730 each quarter with your information preprinted on it. File

the distribution of prizes among persons who have paid or

a return each month whether or not you have taxable

promised to pay for a chance to win the prizes. The

wagers to report. If you have no tax to report, write “None”

winning prizes are usually determined by the drawing of

in the entry space for line 6; sign and date Form 730. If you

numbers, symbols, or tickets from a wheel or other

stop accepting wagers, check the final return box above

container or by the outcome of a given event.

line 1.

It does not include either of the following kinds of events.

Where to file. Mail your return to the Department of the

1. Games of a type in which usually the wagers are

Treasury, Internal Revenue Service, Cincinnati, OH

placed, winners are determined, and the prizes are

45999-0100.

distributed in the presence of everyone who placed a

wager. Card games, roulette games, dice games, bingo,

Specific Instructions

keno, and gambling wheels usually fall within this

Line 1. Enter the gross amount of wagers accepted during

exception.

the month. Gross wagers are the total of those wagers that

2. Drawings conducted by a tax-exempt organization, if

are authorized and those wagers that are not authorized by

the net proceeds of the drawing do not benefit a private

the state in which they are accepted. Include all charges

shareholder or individual.

connected with placing the wager, including any fee or

What is not taxed. The tax is not imposed on the

charge incident to placing the wager. If you can prove that

following five items:

the person placing the wager has paid a separate charge

Parimutuel wagering, including horse racing, dog racing,

equal to the tax, do not include that amount in the amount

and jai alai, when it is licensed under state law.

of the wager. Do not include laid-off wagers in this amount.

Coin-operated devices, such as pinball machines.

What is taxed. The tax applies only to wagers accepted

in the United States or placed by a person who is in the

United States with a person who is a U.S. citizen or

resident.

Form 730 - Monthly Tax Return For Wagers Page 3

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