Treasury Regulations (26 C.F.R.)
26 CFR § 44.4411-1
Imposition of tax.
# (a) In general.
A special tax of $50 per year is required to be paid by each person:
(1) Who is liable for the tax imposed by section 4401, or
(2) Who is engaged in receiving wagers for or on behalf of any person who is liable for the tax imposed by section 4401.
# (b) Examples.
The application of paragraph (a) of this section may be illustrated by the following examples:
Example 1.
A, who is engaged in the business of accepting horse race bets, employs ten persons to receive on his behalf wagers which are transmitted by telephone. A also employs a secretary and a bookkeeper. A and each of the ten persons who receives wagers by telephone on behalf of A are liable for the special tax. The secretary and bookkeeper are not liable for the special tax unless they also receive wagers for A.
Example 2.
B operates a numbers game and has an arrangement with ten persons, who are employed in various capacities, such as bootblacks, elevator operators, news dealers, etc., to receive wagers from the public on his behalf. B also employs C to collect from the ten persons referred to, the wagers received by them on B's behalf and to deliver such wagers to B. C performs no other services for B. B and the ten persons who receive wagers on his behalf are liable for the special tax. C is not liable for the special tax since he is not engaged in receiving wagers for B.
# (c) Cross references.
For provisions relating to the payment of the special tax (computation, manner of payment, etc.), see Subpart D of this part.
Source: view the official text
In this part (39 sections)
- 44.0-1 · Introduction.
- 44.0-2 · General definitions and use of terms.
- 44.0-3 · Scope of regulations.
- 44.0-4 · Extent to which the regulations in this part supersede prior…
- 44.4401-1 · Imposition of tax.
- 44.4401-2 · Person liable for tax.
- 44.4401-3 · When tax attaches.
- 44.4402-1 · Exemptions.
- 44.4403-1 · Daily record.
- 44.4404-1 · Territorial extent.
- 44.4411-1 · Imposition of tax.
- 44.4412-1 · Registration.
- 44.4413-1 · Certain provisions made applicable.
- 44.4421-1 · Definitions.
- 44.4422-1 · Doing business in violation of Federal or State law.
- 44.4901-1 · Payment of special tax.
- 44.4902-1 · Partnership liability.
- 44.4905-1 · Change of ownership.
- 44.4905-2 · Change of address.
- 44.4905-3 · Liability for failure to register change or removal.
- 44.4906-1 · Cross reference.
- 44.6001-1 · Record requirements.
- 44.6011(a)-1 · (a)-1 Returns.
- 44.6060-1 · Reporting requirements for tax return preparers.
- 44.6071-1 · Time for filing return.
- 44.6091-1 · Place for filing returns.
- 44.6107-1 · Tax return preparer must furnish copy of return to taxpayer…
- 44.6109-1 · Tax return preparers furnishing identifying numbers for…
- 44.6151-1 · Time and place for paying taxes.
- 44.6419-1 · Credit or refund generally.
- 44.6419-2 · Credit or refund on wagers laid off by taxpayer.
- 44.6694-1 · Section 6694 penalties applicable to tax return preparer.
- 44.6694-2 · Penalties for understatement due to an unreasonable…
- 44.6694-3 · Penalty for understatement due to willful, reckless, or…
- 44.6694-4 · Extension of period of collection when preparer pays 15…
- 44.6695-1 · Other assessable penalties with respect to the preparation…
- 44.6696-1 · Claims for credit or refund by tax return preparers.
- 44.7262-1 · Failure to pay special tax.
- 44.7701-1 · Tax return preparer.