§4401 — Imposition of tax
12 cases·1 distinguished·2 criticized·9 cited
Statute Text — 26 U.S.C. §4401
There shall be imposed on any wager authorized under the law of the State in which accepted an excise tax equal to 0.25 percent of the amount of such wager.
There shall be imposed on any wager not described in paragraph (1) an excise tax equal to 2 percent of the amount of such wager.
In determining the amount of any wager for the purposes of this subchapter, all charges incident to the placing of such wager shall be included; except that if the taxpayer establishes, in accordance with regulations prescribed by the Secretary, that an amount equal to the tax imposed by this subchapter has been collected as a separate charge from the person placing such wager, the amount so collected shall be excluded.
Each person who is engaged in the business of accepting wagers shall be liable for and shall pay the tax under this subchapter on all wagers placed with him. Each person who conducts any wagering pool or lottery shall be liable for and shall pay the tax under this subchapter on all wagers placed in such pool or lottery. Any person required to register under section 4412 who receives wagers for or on behalf of another person without having registered under section 4412 the name and place of residence of such other person shall be liable for and shall pay the tax under this subchapter on all such wagers received by him.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §44.4401-1 Imposition of tax
- Treas. Reg. §Treas. Reg. §44.4401-1(a) In general.
- Treas. Reg. §Treas. Reg. §44.4401-1(b) Rate of tax; amount of wager—(1) Rate of tax.
- Treas. Reg. §Treas. Reg. §44.4401-2 Person liable for tax
- Treas. Reg. §Treas. Reg. §44.4401-2(a) In general.
- Treas. Reg. §Treas. Reg. §44.4401-2(b) In business of accepting wagers.
- Treas. Reg. §Treas. Reg. §44.4401-2(c) Lay-offs.
- Treas. Reg. §Treas. Reg. §44.4401-3 When tax attaches
12 Citing Cases
- 57 - as a corporation for purposes ofthe wagering tax imposed by section 4401." We disagree with both ofUniband's arguments.28 1.
rn. With regard to TMBCI, Uniband argues that it is a corporation, first, because it is a “body politic” described in 26 C.F.R. section 301.7701-2(b)(l), and, second, because it is treated as a corporation for purposes of the wagering tax imposed by section 4401. We disagree with both of Uniband’s arguments. 1. Body politic For tax purposes, the term “corporation” includes “[a] business entity organized under a Federal or State statute, or under a statute of a federally recognized Indian tribe,
owhere in any ofthe dozens ofsections in the Code can be found * * * [a] statute or law that plainly and clearly imposes liability for the Federal income tax on the average American worker." Petitioner cites numerous example ofspecific text such as: section 4401, which levies a tax on each person who is engaged in the business ofaccepting wagers; section 4972, tax on contributions to qualified employer pension plans imposing a tax on "the employer making the contributions"; and section 5703, exc
662 at issue here, however, is subject to deficiency procedures, pursuant to section 6665(a). See United States v. Erie Forge Co., 191 F.2d 627, 630-631 (3d Cir. 1951), quoted in Winter v. Commissioner, 135 T.C. 238, 273 (2010). 7See, e.g., 1998 Act sec. 4401, 112 Stat. at 784, which amended Code section 8021 with the following effective dates: (b) Effective Dates.-- (1) Subsection (e) ofsection 8021 ofthe Internal Revenue Code of 1986, as added by subsection (a) ofthis section, shall apply to r