[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR44.4401-3]

[Page 35]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 44_TAXES ON WAGERING; EFFECTIVE JANUARY 1, 1955--Table of Contents
 
                         Subpart B_Tax on Wagers
 
Sec. 44.4401-3  When tax attaches.

    The tax attaches when (a) a person engaged in the business of 
accepting wagers with respect to a sports event or a contest, or (b) a 
person who operates a wagering pool or lottery for profit, accepts a 
wager or contribution from a bettor. In the case of a wager on credit, 
the tax attaches whether or not the amount of the wager is actually 
collected from the bettor. However, if an amount equivalent to the 
amount of the wager is paid to the bettor prior to the close of the 
calendar month in which such wager was accepted, either because of the 
cancellation of the event upon which the wager was placed, or because 
the wager was cancelled or rescinded by mutual agreement, the wager need 
not be reported on the taxpayer's return for such month. Where such 
cancellation or rescission takes place in a month subsequent to the 
month in which the wager was accepted, credit or refund of the tax paid 
with respect to such wager may be made subject to the provisions of 
Sec. 44.6419-1.