Form 730 Form 730 Monthly Tax Return for Wagers

730

Form
(Rev. January 2009)
Department of the Treasury
Internal Revenue Service (77)

Enter your
name,
address,
employer
identification
number,
and
month and
year of
return.

©

Monthly Tax Return for Wagers

OMB No. 1545-0235

(Section 4401 of the Internal Revenue Code)

For IRS Use Only

Name

Month and year

Number, street, and room or suite no.

Employer identification number

T
FF
FD
FP
I
T

City, state, and ZIP code

Check applicable boxes:

Final return

Address change

1

Gross amount of wagers accepted during month (not including laid-off wagers) (see instructions)

1

2

Gross amount of laid-off wagers accepted during month (see instructions)

2

3

Add lines 1 and 2

3

4a Tax on wagers authorized under the law of the state in which
accepted. Enter the amount of these wagers included in line
3; multiply by the amount shown and enter the result
$
b Tax on wagers other than wagers described on line 4a. Enter
the amount of these wagers included in line 3; multiply by the
amount shown and enter the result
$
c Tax on wagers. Add lines 4a and 4b
5

× .0025 =

4a

×

4b
4c

.02 =

5

Credits. No credit is allowed unless supported by evidence (see instructions)

6 Balance due. Subtract line 5 from line 4c. See the instructions for line 6.
6
File this return, your payment, and voucher with the IRS as shown under Where to file on page 3. Make your check or money order
payable to the “United States Treasury.” Write your name, address, EIN, and “Form 730” on it.
Under penalties of perjury, I declare that I have examined this return and any accompanying certificates and statements, and, to the best of my
knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer
has any knowledge.

Sign
Here
Keep a copy
of this return
for your records.

Paid
Preparer’s
Use Only

©

©

Signature
Type or print your name below signature.

©

Date

Preparer’s
signature
Firm’s name (or
yours if self-employed),
address, and ZIP code

Ä

Check
if selfemployed

©

Phone no. (
Cat. No. 20585U

Detach Here and Mail With Your Payment and Form 730.

730-V
©

(77)

1 Enter your employer identification
number.

Form

Ä

(Rev. 1-2009)

730-V

(2009)

Y

Y

Do not staple or attach this voucher to your payment.
2

Dollars

Enter the amount of your payment.

Enter year and month as shown on Form 730.

Y

730

OMB No. 1545-0235

Department of the Treasury
Internal Revenue Service

Y

)

Form

Payment Voucher

(Rev. January 2009)

3

Preparer’s SSN or PTIN

EIN

For Privacy Act and Paperwork Reduction Act Notice, see page 2.

Form

Date

M

4

Enter your business name (individual name if sole proprietor).

M
Enter your address.

Send Form 730, this voucher, and payment to:
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0100

©

Enter your city, state, and ZIP code.

Cents

Form 730 (Rev. 1-2009)

Form 730-V, Payment Voucher
Purpose of Form
Complete Form 730-V if you are making a payment by check or
money order with Form 730, Monthly Tax Return for Wagers. We
will use the completed voucher to credit your payment more
promptly and accurately, and to improve our service to you.
If you have your return prepared by a third party and a
payment is required, provide this payment voucher to the return
preparer.
Do not file Form 730-V if you are paying the balance due on
line 6 of Form 730 using EFTPS.

Specific Instructions
Box 1. If you do not have an EIN, you may apply for one online.
Go to the IRS website at www.irs.gov/businesses/small and click
on the “Employer ID Numbers (EINs)” link. You may also apply
for an EIN by telephone by calling 1-800-829-4933, or you can
fax or mail Form SS-4, Application for Employer Identification
Number, to the IRS.
Box 2. Enter the amount paid from line 6 of Form 730.
Box 3. Enter the same date you entered on page 1 of Form 730.
Box 4. Enter your name and address as shown on Form 730.
● Enclose your check or money order made payable to the
“United States Treasury.” Be sure to enter your EIN, “Form 730,”
and the tax period on your check or money order. Do not send
cash. Do not staple this voucher or your payment to Form 730
(or to each other).
● Detach the completed voucher and send it with your payment
and Form 730. See Where to file on page 3 of Form 730.

Page

2

Privacy Act and Paperwork Reduction Act Notice. We ask for
the information on Form 730 to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying with
these laws and to allow us to figure and collect the right amount
of tax. Section 4401 of the Internal Revenue Code imposes a tax
on wagering. Form 730 is used to determine the amount of the
tax. Section 6109 requires you to provide your employer
identification number (EIN). Routine uses of this information
include giving it to the Department of Justice for civil and
criminal litigation, and to cities, states, and the District of
Columbia for use in administering their tax laws. We may also
disclose this information to other countries under a tax treaty, to
federal and state agencies to enforce federal nontax criminal
laws, or to federal law enforcement and intelligence agencies to
combat terrorism. If you fail to provide this information in a
timely manner or provide false information, you may be liable for
penalties and interest.
You are not required to provide the information requested on
a form that is subject to the Paperwork Reduction Act unless the
form displays a valid OMB control number. Books or records
relating to a form or its instructions must be retained as long as
their contents may become material in the administration of any
Internal Revenue law. Generally, tax returns and return
information are confidential, as required by section 6103.
The time needed to complete and file Form 730 will vary
depending on individual circumstances. The estimated average
times are: Recordkeeping, 6 hr., 41 min.; Learning about the
law or the form, 47 min.; Preparing, copying, assembling, and
sending the form to the IRS, 56 min.
If you have comments concerning the accuracy of these time
estimates or suggestions for making Form 730 simpler, we
would be happy to hear from you. You can write to the Internal
Revenue Service, Tax Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send Form 730 to this address.
Instead, see Where to file on page 3.

Form 730 (Rev. 1-2009)

Section references are to the Internal Revenue Code unless
otherwise noted.

General Instructions
Who must file. You must file Form 730 and pay the tax on
wagers under section 4401(a) if you:
● Are in the business of accepting wagers,
● Conduct a wagering pool or lottery, or
● Are required to be registered and you received wagers
for or on behalf of another person but did not report that
person’s name and address.
Use Form 11-C, Occupational Tax and Registration
Return for Wagering, to register.
Exempt organizations. Organizations exempt from
income tax under section 501 or 521 are not exempt from
the tax on wagering or the occupational tax. However, see
Lottery below for an exception.
Completing Form 730. If you are not using the
preaddressed Form 730, enter your name, address,
employer identification number (EIN), and the month (MM)
and year (YYYY) for which this form is filed.
Rounding. You may round amounts to whole dollars. If
you do round, leave the entry for the cents amounts blank.
You can drop amounts that are less than 50 cents, and
increase amounts that are 50 cents or more to the next
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
to enter on a line, include cents when adding and only
round off the total.
When to file. If you are liable for the tax, file Form 730 for
each month by the last day of the month following the
month for which you are reporting taxable wagers. The IRS
will not send you a notice that a return is due. Once you file
a return reporting the tax, the IRS will mail you a Package
730 each quarter with your information preprinted on it. File
a return each month whether or not you have taxable
wagers to report. If you have no tax to report, write “None”
in the entry space for line 6; sign and date Form 730. If you
stop accepting wagers, check the final return box above
line 1.
Where to file. Mail your return to the Department of the
Treasury, Internal Revenue Service, Cincinnati, OH
45999-0100.

Specific Instructions
Line 1. Enter the gross amount of wagers accepted during
the month. Gross wagers are the total of those wagers that
are authorized and those wagers that are not authorized by
the state in which they are accepted. Include all charges
connected with placing the wager, including any fee or
charge incident to placing the wager. If you can prove that
the person placing the wager has paid a separate charge
equal to the tax, do not include that amount in the amount
of the wager. Do not include laid-off wagers in this amount.
What is taxed. The tax applies only to wagers accepted
in the United States or placed by a person who is in the
United States with a person who is a U.S. citizen or
resident.
Taxable wagers include those placed:
● On a sports event or contest with a person engaged in
the business of accepting wagers on a sports event or
contest.

Page

3

● In a wagering pool on a sports event or contest if the
pool is conducted for profit.
● In a lottery conducted for profit, including the numbers
game, policy, punch boards, and similar types of wagering.
Sports event. A sports event includes every type of
amateur, scholastic, or professional sports competition,
such as auto racing, baseball, basketball, billiards,
bowling, boxing, cards, checkers, cricket, croquet, dog
racing, football, golf, gymnastics, hockey, horse racing,
lacrosse, rubgy, soccer, squash, tennis, track, tug of war,
and wrestling.
Contest. A contest is any competition involving speed,
skill, endurance, popularity, politics, strength, or
appearance, such as elections, the outcome of nominating
conventions, dance marathons, log-rolling contests,
wood-chopping contests, weightlifting contests, beauty
contests, and spelling bees.
Wagering pool. A wagering pool conducted for profit
includes any method or scheme for giving prizes to one or
more winning bettors based on the outcome of a sports
event, a contest, or a combination or series of these events
or contests if the wagering pool is managed and
conducted for the purpose of making a profit. A wagering
pool or lottery may be conducted for profit even if a direct
profit does not occur. If you operate the wagering pool or
lottery with the expectation of a profit in the form of
increased sales, attendance, or other indirect benefits, you
conduct it for profit.
Lottery. This includes the numbers game, policy, punch
boards, and similar types of wagering. In general, a lottery
conducted for profit includes any method or scheme for
the distribution of prizes among persons who have paid or
promised to pay for a chance to win the prizes. The
winning prizes are usually determined by the drawing of
numbers, symbols, or tickets from a wheel or other
container or by the outcome of a given event.
It does not include either of the following kinds of events.
1. Games of a type in which usually the wagers are
placed, winners are determined, and the prizes are
distributed in the presence of everyone who placed a
wager. Card games, roulette games, dice games, bingo,
keno, and gambling wheels usually fall within this
exception.
2. Drawings conducted by a tax-exempt organization, if
the net proceeds of the drawing do not benefit a private
shareholder or individual.
What is not taxed. The tax is not imposed on the
following five items:
● Parimutuel wagering, including horse racing, dog racing,
and jai alai, when it is licensed under state law.
● Coin-operated devices, such as slot machines, pinball
machines, or video games.
● 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.
● Games of the type in which all persons placing wagers in
the game are present when wagers are placed, winners are
determined, and prizes or other property are distributed.
● Drawings conducted by an organization exempt from tax
under sections 501 and 521, as long as the net proceeds
of the drawing do not benefit a private shareholder or
individual.

Page

Form 730 (1-2009)

Line 2. Enter the gross amount of any laid-off wagers
accepted during the month. Gross laid-off wagers are the
total of those laid-off wagers that are authorized and those
that are not authorized by the state in which they are
accepted.
Lines 4a and 4b. Enter the applicable amount included in
line 3. Multiply the amount by the rate shown and enter the
result. The rate of tax depends on whether the wager is
authorized by the laws of the state in which the wager was
accepted. The lower rate applies to wagers that are
authorized by state law.
Line 5. You may be able to claim a credit for the amount of
any overpayment of tax or for the amount of tax imposed
with respect to a wager that you laid off. You may also use
Form 8849, Schedule 6, to make a claim for refund.
Credit for an overpayment of tax. Generally, you may
claim a credit for any overpayment of tax. The claim must
be filed within 3 years from the time the Form 730 reporting
the tax was filed or 2 years from the time the tax was paid,
whichever is later. No credit is allowed unless a statement
of the facts involving the overpayment is attached that
includes the following information:
● An explanation of the reason for claiming a credit.
● The date of payment and the amount of the tax.
● Whether any previous claim covering the amount
involved, or any part, has been filed.
● A statement that you:
1. Have not collected (whether as a separate charge or
otherwise) the amount of the tax from the person that
placed the wager on which the tax was imposed,
2. Have repaid the amount of the tax to the person that
placed the wager, or
3. Have the written consent of the person that placed the
wager to the allowance of the credit. The consent must be
attached to the return.
● If the overpayment relates to a laid-off wager accepted
by you, one of the above three statements must be
attached for both the person who placed the laid-off wager
with you and the person who placed the original wager.
Credit for wagers laid off by you. If you accept a
wager and lay off all or a part of that wager with a person
who is liable for tax, then follow the rules below to claim a
credit depending on if you paid the tax.
● If you have not paid the tax, a credit may be claimed on
Form 730 in the amount of the tax due for the laid-off
wager, provided there is attached to Form 730 for the
month during which the wager was accepted and laid off
the certificate described in Regulations section
44.6419-2(d).
● If you have paid the tax, a credit may be allowed for the
tax paid on the laid-off amount. The claim must be filed
within 3 years from the time the return reporting the tax
was filed or 2 years from the time the tax was paid,
whichever is later. Interest will not be allowed on a credit
for the tax imposed on a wager that you laid off.
No credit is allowed unless the following information is
attached to the return for each laid-off wager:
1. The certificate described in Regulations section
44.6419-2(d).

4

2. A statement that includes:
a. The reason for the credit,
b. The month in which the tax was paid,
c. The date of payment, and
d. Whether any previous claim covering all or part of
the amount involved has been filed.
Line 6. If line 4c is more than line 5, enter the difference in
line 6. You do not have to pay if line 6 is under $1.00. You
may pay the amount shown on line 6 using the Electronic
Federal Tax Payment System (EFTPS) or by check or
money order. If you pay using EFTPS, do not file Form
730-V, Payment Voucher.
Electronic payment. Now, more than ever before,
businesses can enjoy the benefits of paying their federal
taxes electronically. Whether you rely on a tax professional
or handle your own taxes, the IRS offers you a convenient
program to make it easier. Spend less time on taxes and
more time running your business. Use EFTPS to your
benefit. For information on EFTPS, visit www.eftps.gov or
call EFTPS Customer Service at 1-800-555-4477.
Recordkeeping. Keep copies of your tax returns, records,
and accounts of all transactions to show that the correct
tax has been paid. Keep records to support all adjustments
claimed and all exemptions at least 4 years from the latest
of the following dates: when the tax became due, when
you paid the tax, when you claimed an adjustment, or
when you filed a claim for refund.
Always keep your records available for IRS inspection.
Penalties. Avoid penalties and interest by filing returns and
paying taxes when due. The law provides penalties for
filing a return late; paying taxes late; failing to file a return;
negligence; and fraud. These penalties are in addition to
the interest charge on late payments. The penalty for filing
a return late or paying the tax due late will not be imposed
if you can show that the failure to file a timely return or
timely pay the tax due is due to reasonable cause.
Unresolved tax problems. The Taxpayer Advocate’s
office may assign a personal advocate to taxpayers who
have been unable to resolve their problems with the IRS.
You can write to the Taxpayer Advocate at the IRS office
that last contacted you or call a toll-free assistance
number, 1-877-777-4778. Persons who have access to
TTY/TDD equipment may call 1-800-829-4059 to ask for
help from the Taxpayer Advocate. This office cannot
change the law or technical decisions, but it can help clear
up problems that resulted from previous contacts.
Disclosure of information on wagering taxes. Except for
administering or enforcing Internal Revenue taxes, neither
the Treasury Department nor any of its employees may
disclose documents, records, or information obtained
through them that a taxpayer supplies in connection with
wagering taxes. Also, certain documents related to
wagering taxes and information obtained through them
that relates to wagering taxes may not be used against the
taxpayer in any nontax criminal proceeding. See section
4424 for more details.

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