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

Form 730 (Rev. 12-2012)

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

Future developments. The IRS has created a page on

the business of accepting wagers on a sports event or

IRS.gov for information about Form 730 and its instructions

contest;

at Information about any future

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

developments affecting Form 730 (such as legislation

pool is conducted for profit; or

enacted after we release it) will be posted on that page.

• In a lottery conducted for profit, including the numbers

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

General Instructions

Sports event. A sports event includes every type of

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

amateur, scholastic, or professional sports competition,

wagers under section 4401(a) if you:

such as auto racing, baseball, basketball, billiards,

• Are in the business of accepting wagers,

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

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

• Conduct a wagering pool or lottery, or

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

• Are required to be registered and you received wagers

and wrestling.

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

Contest. A contest is any competition involving speed,

person’s name and address.

skill, endurance, popularity, politics, strength, or

Use Form 11-C, Occupational Tax and Registration

appearance, such as elections, the outcome of nominating

Return for Wagering, to register.

conventions, dance marathons, log-rolling contests,

Exempt organizations. Organizations exempt from

wood-chopping contests, weightlifting contests, beauty

income tax under section 501 or 521 are generally not

contests, and spelling bees.

exempt from the tax on wagering or the occupational tax.

Wagering pool. A wagering pool conducted for profit

However, see Lottery below for an exception.

includes any method or scheme for giving prizes to one or

Completing Form 730. If you are not using the

more winning bettors based on the outcome of a sports

preaddressed Form 730, enter your name, address,

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

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

or contests if the wagering pool is managed and

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

conducted for the purpose of making a profit. A wagering

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

Rounding. You may round amounts to whole dollars. If

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

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

lottery with the expectation of a profit in the form of

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

increased sales, attendance, or other indirect benefits, you

increase amounts that are 50 cents or more to the next

conduct it for profit.

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

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

Lottery. This includes the numbers game, policy, punch

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

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

round off the total.

conducted for profit includes any method or scheme for

the distribution of prizes among persons who have paid or

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

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

each month by the last day of the month following the

winning prizes are usually determined by the drawing of

month for which you are reporting taxable wagers. The IRS

numbers, symbols, or tickets from a wheel or other

will not send you a notice that a return is due. File a return

container, or by the outcome of a given event.

each month whether or not you have taxable wagers to

report. If you have no tax to report, write “None” in the entry

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

space for line 6 and sign and date Form 730. If you stop

• Games of a type in which usually the wagers are

accepting wagers, check the final return box above

placed, winners are determined, and the prizes are

line 1.

distributed in the presence of everyone who placed a

Where to file. Mail your return to:

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

keno, and gambling wheels usually fall within this

Department of Treasury

Internal Revenue Service

exception.

Cincinnati, OH 45999-0100

• Drawings conducted by a tax-exempt organization, if

Specific Instructions

the net proceeds of the drawing do not benefit a private

shareholder or individual.

Line 1. Enter the gross amount of wagers accepted during

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

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

following five items.

are authorized and those wagers that are not authorized by

• Parimutuel wagering, including horse racing, dog racing,

the state in which they are accepted. Include all charges

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

connected with placing the wager, including any fee or

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

• Coin-operated devices, such as slot machines, pinball

the person placing the wager has paid a separate charge

machines, or video games.

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

• Sweepstakes, wagering pools, or lotteries that are

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

conducted by an agency of a state, if the wager is placed

What is taxed. The tax applies only to wagers accepted

with the state agency or its authorized agents or

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

employees.

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

• Games of the type in which all persons placing wagers in

resident.

the game are present when wagers are placed, winners are

determined, and prizes or other property are distributed.

Form 730 - Monthly Tax Return For Wagers Page 3

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