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

Form 730 (Rev. 12-2013)

Page

• Games of the type in which all persons

If you have not paid the tax, you may claim

• In a wagering pool on a sports event or

contest if the pool is conducted for profit; or

placing wagers in the game are present when

a credit on Form 730 in the amount of the tax

wagers are placed, winners are determined,

due for the laid-off wager, if the certificate

• In a lottery conducted for profit, including

described in Regulations section 44.6419-2(d)

and prizes or other property are distributed.

the numbers game, policy, punch boards,

is attached to Form 730 for the month during

• Drawings conducted by an organization

and similar types of wagering.

which the wager was accepted and laid off.

exempt from tax under sections 501 and 521,

Sports event. A sports event includes every

If you have paid the tax, you may claim a

as long as the net proceeds of the drawing do

type of amateur, scholastic, or professional

credit for the tax paid on the laid-off amount.

not benefit a private shareholder or individual.

sports competition, such as auto racing,

The claim must be filed within 3 years from

Line 2. Enter the gross amount of any laid-off

baseball, basketball, billiards, bowling, boxing,

the time the return reporting the tax was filed

wagers accepted during the month. Gross

cards, checkers, cricket, croquet, dog racing,

or 2 years from the time the tax was paid,

laid-off wagers are the total of those laid-off

football, golf, gymnastics, hockey, horse

whichever is later. Interest will not be allowed

wagers that are authorized and those that are

racing, lacrosse, rugby, soccer, squash,

on a credit for the tax imposed on a wager

not authorized by the state in which they are

tennis, track, tug of war, and wrestling.

that you laid off.

accepted.

Contest. A contest is any competition

No credit is allowed unless the following

Lines 4a and 4b. Enter the applicable amount

involving speed, skill, endurance, popularity,

information is attached to the return for each

included in line 3. Multiply the amount by the

politics, strength, or appearance, such as

laid-off wager:

rate shown and enter the result. The rate of

elections, the outcome of nominating

• The certificate described in Regulations

tax depends on whether the wager is

conventions, dance marathons, log-rolling

section 44.6419-2(d).

authorized by the laws of the state in which

contests, wood-chopping contests,

the wager was accepted. The lower rate

weightlifting contests, beauty contests, and

• A statement that includes (a) the reason for

applies to wagers that are authorized by state

spelling bees.

the credit, (b) the month in which the tax was

law.

paid, (c) the date of payment, and (d) whether

Wagering pool. A wagering pool conducted

any previous claim covering all or part of the

Line 5. You may be able to claim a credit for

for profit includes any method or scheme for

amount involved has been filed.

the amount of any overpayment of tax or for

giving prizes to one or more winning bettors

the amount of tax imposed with respect to a

Line 6. If line 4c is more than line 5, enter the

based on the outcome of a sports event, a

wager that you laid off. You may also use

difference on line 6. You do not have to pay if

contest, or a combination or series of these

Schedule 6 (Form 8849), Other Claims, to

line 6 is under $1.00. You may pay the

events or contests if the wagering pool is

make a claim for refund.

amount shown on line 6 using the Electronic

managed and conducted for the purpose of

Federal Tax Payment System (EFTPS) or by

making a profit. A wagering pool or lottery

Credit for an overpayment of tax.

check or money order. If you pay using

may be conducted for profit even if a direct

Generally, you may claim a credit for any

EFTPS, do not file Form 730-V, Payment

profit does not occur. If you operate the

overpayment of tax. The claim must be filed

Voucher.

wagering pool or lottery with the expectation

within 3 years from the time the Form 730

of a profit in the form of increased sales,

reporting the tax was filed or 2 years from the

Electronic payment. Now, more than ever

attendance, or other indirect benefits, you

time the tax was paid, whichever is later. No

before, businesses can enjoy the benefits of

conduct it for profit.

credit is allowed unless a statement of the

paying their federal taxes electronically.

facts involving the overpayment is attached

Whether you rely on a tax professional or

Lottery. This includes the numbers game,

that includes the following information.

handle your own taxes, the IRS offers you a

policy, punch boards, and similar types of

convenient program to make it easier. Spend

wagering. In general, a lottery conducted for

• An explanation of the reason for claiming a

less time on taxes and more time running

profit includes any method or scheme for the

credit.

your business. Use EFTPS to your benefit.

distribution of prizes among persons who

• The date of payment and the amount of the

For information on EFTPS, visit

have paid or promised to pay for a chance to

tax.

or call EFTPS Customer

win the prizes. The winning prizes are usually

Service at 1-800-555-4477.

• Whether any previous claim covering the

determined by the drawing of numbers,

amount involved, or any part, has been filed.

symbols, or tickets from a wheel or other

Paid Preparer Use Only

container, or by the outcome of a given event.

• A statement that you:

It does not include either of the following

A paid preparer must sign Form 730 and

1. Have not collected (whether as a

kinds of events.

provide the information in the Paid Preparer

separate charge or otherwise) the amount of

Use Only section at the end of the form if the

the tax from the person that placed the wager

• Games of a type in which usually the wagers

preparer was paid to prepare the form and is

on which the tax was imposed, or

are placed, winners are determined, and the

not an employee of the filing entity. The

prizes are distributed in the presence of

2. Have repaid the amount of the tax to the

preparer must give you a copy of the form in

everyone who placed a wager. Card games,

person that placed the wager, or

addition to the copy to be filed with the IRS.

roulette games, dice games, bingo, keno, and

3. Have the written consent of the person

gambling wheels usually fall within this

If you are a paid preparer, enter your

that placed the wager to the allowance of the

exception.

Preparer Tax Identification Number (PTIN) in

credit. The consent must be attached to the

the space provided. If you work for a tax

• Drawings conducted by a tax-exempt

return.

preparation firm, you must also enter the

organization, if the net proceeds of the

Note. If the overpayment relates to a laid-off

firm's name, address, and EIN. However, you

drawing do not benefit a private shareholder

wager accepted by you, one of the three

cannot use the PTIN of the tax preparation

or individual.

statements in the previous bullet must be

firm in place of your PTIN.

What is not taxed. The tax is not imposed

attached for both the person who placed the

You can apply for a PTIN online or by filing

on the following five items.

laid-off wager with you and the person who

Form W-12, IRS Paid Preparer Tax

placed the original wager.

• Parimutuel wagering, including horse racing,

Identification Number (PTIN) Application and

dog racing, and jai alai, when it is licensed

Credit for wagers laid off by you. If you

Renewal. For more information about applying

under state law.

accept a wager and lay off all or a part of that

for a PTIN online, visit the IRS website at

wager with a person who is liable for tax,

• Coin-operated devices, such as slot

follow the rules below to claim a credit

machines, pinball machines, or video games.

depending on whether or not you paid the tax.

• Sweepstakes, wagering pools, or lotteries

that are conducted by an agency of a state, if

the wager is placed with the state agency or

its authorized agents or employees.

Form 730 - Monthly Tax Return For Wagers Page 3

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