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

Form 730 (Rev. 12-2017)

Page

Sports event. A sports event includes

• Games of the type in which all persons

If you haven’t paid the tax, you may claim a

every type of amateur, scholastic, or

placing wagers in the game are present when

credit on Form 730 in the amount of the tax

professional sports competition, such as auto

wagers are placed, winners are determined,

due for the laid-off wager, if the certificate

racing, baseball, basketball, billiards, bowling,

and prizes or other property are distributed.

described in Regulations section 44.6419-2(d)

boxing, cards, checkers, cricket, croquet, dog

is attached to Form 730 for the month during

• Drawings conducted by an organization

racing, football, golf, gymnastics, hockey,

which the wager was accepted and laid off.

exempt from tax under sections 501 and 521,

horse racing, lacrosse, rugby, soccer, squash,

as long as the net proceeds of the drawing

If you have paid the tax, you may claim a

tennis, track, tug of war, and wrestling.

don’t benefit a private shareholder or

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

Contest. A contest is any competition

individual.

The claim must be filed within 3 years from

involving speed, skill, endurance, popularity,

the time the return reporting the tax was filed

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

politics, strength, or appearance, such as

or 2 years from the time the tax was paid,

wagers accepted during the month. Gross

elections, the outcome of nominating

whichever is later. Interest won’t be allowed

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

conventions, dance marathons, log-rolling

on a credit for the tax imposed on a wager

wagers that are authorized and those that

contests, wood-chopping contests,

that you laid off.

aren’t authorized by the state in which they

weightlifting contests, beauty contests, and

are accepted.

No credit is allowed unless the following

spelling bees.

information is attached to the return for each

Lines 4a and 4b. Enter the applicable amount

Wagering pool. A wagering pool

laid-off wager:

included in line 3. Multiply the amount by the

conducted for profit includes any method or

rate shown and enter the result. The rate of

• The certificate described in Regulations

scheme for giving prizes to one or more

tax depends on whether the wager is

section 44.6419-2(d).

winning bettors based on the outcome of a

authorized by the laws of the state in which

• A statement that includes (a) the reason for

sports event, a contest, or a combination or

the wager was accepted. The lower rate

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

series of these events or contests if the

applies to wagers that are authorized by state

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

wagering pool is managed and conducted for

law.

any previous claim covering all or part of the

the purpose of making a profit. A wagering

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

amount involved has been filed.

pool or lottery may be conducted for profit

the amount of any overpayment of tax or for

even if a direct profit doesn’t occur. If you

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

the amount of tax imposed with respect to a

operate the wagering pool or lottery with the

difference on line 6. You don’t have to pay if

wager that you laid off. You may also use

expectation of a profit in the form of increased

line 6 is under $1.00. You may pay the

Schedule 6 (Form 8849), Other Claims, to

sales, attendance, or other indirect benefits,

amount shown on line 6 using the Electronic

make a claim for refund.

you conduct it for profit.

Federal Tax Payment System (EFTPS) or by

Credit for an overpayment of tax.

check or money order. If you pay using

Lottery. This includes the numbers game,

Generally, you may claim a credit for any

EFTPS, don’t file Form 730-V, Payment

policy, punch boards, and similar types of

overpayment of tax. The claim must be filed

Voucher.

wagering. In general, a lottery conducted for

within 3 years from the time the Form 730

Electronic payment. Now, more than ever

profit includes any method or scheme for the

reporting the tax was filed or 2 years from the

distribution of prizes among persons who

before, businesses can enjoy the benefits of

time the tax was paid, whichever is later. No

have paid or promised to pay for a chance to

paying their federal taxes electronically.

credit is allowed unless a statement of the

win the prizes. The winning prizes are usually

Whether you rely on a tax professional or

facts involving the overpayment is attached

determined by the drawing of numbers,

handle your own taxes, the IRS offers you a

that includes the following information.

symbols, or tickets from a wheel or other

convenient program to make it easier. Spend

container, or by the outcome of a given event.

• An explanation of the reason for claiming a

less time on taxes and more time running your

credit.

business. Use EFTPS to your benefit. For

It doesn’t include either of the following

information on EFTPS, visit or

kinds of events.

• The date of payment and the amount of the

call EFTPS Customer Service at

tax.

• Games of a type in which usually the wagers

1-800-555-4477.

are placed, winners are determined, and the

• Whether any previous claim covering the

Paid Preparer Use Only

prizes are distributed in the presence of

amount involved, or any part, has been filed.

everyone who placed a wager. Card games,

• A statement that you:

A paid preparer must sign Form 730 and

roulette games, dice games, bingo, keno, and

provide the information in the Paid Preparer

1. Haven’t collected (whether as a separate

gambling wheels usually fall within this

Use Only section at the end of the form if the

charge or otherwise) the amount of the tax

exception.

preparer was paid to prepare the form and

from the person that placed the wager on

• Drawings conducted by a tax-exempt

isn’t an employee of the filing entity. The

which the tax was imposed, or

organization, if the net proceeds of the

preparer must give you a copy of the form in

2. Have repaid the amount of the tax to the

drawing don’t benefit a private shareholder or

addition to the copy to be filed with the IRS.

person that placed the wager, or

individual.

If you’re a paid preparer, enter your

3. Have the written consent of the person

What isn’t taxed. The tax isn’t imposed on

Preparer Tax Identification Number (PTIN) in

that placed the wager to the allowance of the

the following five items.

the space provided. If you work for a tax

credit. The consent must be attached to the

preparation firm, you must also enter the

• Parimutuel wagering, including horse racing,

return.

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

dog racing, and jai alai, when it’s licensed

Note. If the overpayment relates to a laid-off

can’t use the PTIN of the tax preparation firm

under state law.

wager accepted by you, one of the three

in place of your PTIN.

• Coin-operated devices, such as slot

statements in the previous bullet must be

You can apply for a PTIN online or by filing

machines, pinball machines, or video games.

attached for both the person who placed the

Form W-12, IRS Paid Preparer Tax

• Sweepstakes, wagering pools, or lotteries

laid-off wager with you and the person who

Identification Number (PTIN) Application and

that are conducted by an agency of a state, if

placed the original wager.

Renewal. For more information about applying

the wager is placed with the state agency or

Credit for wagers laid off by you. If you

for a PTIN online, visit the IRS website at

its authorized agents or employees.

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

wager with a person who is liable for tax,

follow the rules below to claim a credit

depending on whether or not you paid the tax.

Form 730 - Monthly Tax Return For Wagers Page 3

Related Articles

Related forms

Related Categories