[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: 26CFR44.4411-1]

[Page 37]
 
                       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 C_Occupational Tax
 
Sec. 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.