[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: 26CFR44.4901-1]

[Page 39-40]
 
                       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 D_Miscellaneous and General Provisions Applicable to Taxes on 
                                Wagering
 
Sec. 44.4901-1  Payment of special tax.

    (a) Condition precedent to carrying on business. No persons shall 
engage in the business of accepting wagers subject to the tax imposed by 
section 4401 until he has filed a return on Form 11-C and paid the 
special tax imposed by section 4411. Likewise, no person shall engage in 
receiving wagers for or on behalf of any person engaged in the business 
of accepting wagers until he has filed a return on Form 11-C and paid 
the special tax imposed by section 4411. For provisions relating to the 
tax imposed by section 4401 and the special tax imposed by section 4411, 
see Subparts B and C of this part, respectively.
    (b) Computation of special tax. (1) Section 4411 imposes a special 
tax of $50 per year which is required to be paid by each person who is 
liable for the tax imposed by section 4401 (tax on wagers) or who is 
engaged in receiving wagers for or on behalf of any person who is liable 
for the tax imposed by section 4401. A person engaged both in accepting 
wagers on his own account and in receiving wagers for or on behalf of 
some other person is required to purchase but one special tax stamp.
    (2) The tax year begins July 1 and ends June 30 of the following 
calendar year. Persons commencing business between August 1 and June 30 
(both dates inclusive) shall pay a proportionate part of the annual tax. 
``Commencing business'' means the initial acceptance by a person of a 
wager subject to the tax imposed by section 4401 or the initial 
receiving of a taxable wager by an agent or employee for or on behalf of 
some other person. Persons in business for only a portion of a month are 
liable for tax for the full month, i.e., a person first becoming subject 
to the special tax on, for example, the 20th day of a month, is liable 
for tax for the entire month.
    (c) Tax payment evidenced by special tax stamp. (1) Upon receipt of 
a return on Form 11-C, together with remittance of the full amount of 
tax due, the district director will issue a special tax

[[Page 40]]

stamp as evidence of payment of the special tax.
    (2) District directors will distinctly write or print on the stamp 
before it is delivered or mailed to the taxpayer the following 
information: (i) The taxpayer's registered name, and (ii) the business 
or office address of the taxpayer if he has one; if not, the residence 
address. Special tax stamps will be transmitted by ordinary mail, unless 
it is requested that they be transmitted by registered mail in which 
case additional cost to cover registry fee shall be remitted with the 
return.
    (3) District directors and their collection officers are forbidden 
to issue receipts in lieu of stamps representing the payment of special 
taxes.
    (d) Cross references. For provisions relating to registration and 
information required to be reported on Form 11-C, see Sec. 44.4412-1. 
For other provisions relating to Form 11-C, see Sec. Sec. 44.6011(a)-1 
(relating to returns), 44.6071-1 (time for filing returns and other 
documents), and 44.6091-1 (place for filing returns or other documents).