Title 26 — Internal Revenue CodeRelease 119-73
§4901 Payment of tax
Title 26 › Subtitle Subtitle D— - Miscellaneous Excise Taxes › Chapter CHAPTER 40— - GENERAL PROVISIONS RELATING TO OCCUPATIONAL TAXES › § 4901
Summary
You must pay the special tax before you start or run any betting business that is subject to the wagering tax. Special taxes are fixed on the first day of July each year or when a business begins. If fixed on July 1, the tax covers 1 year. If a business starts later, the tax is figured for the part of the year from the first day of the month the business began through and including the 30th day of June following.
Full Legal Text
Title 26, §4901
Internal Revenue Code — Source: USLM XML via OLRC
(a)No person shall be engaged in or carry on any trade or business subject to the tax imposed by section 4411 (wagering) until he has paid the special tax therefor.
(b)All special taxes shall be imposed as of on the first day of July in each year, or on commencing any trade or business on which such tax is imposed. In the former case the tax shall be reckoned for 1 year, and in the latter case it shall be reckoned proportionately, from the first day of the month in which the liability to a special tax commenced, to and including the 30th day of June following.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1978—Subsec. (a). Pub. L. 95–600 struck out “or 4461(a)(1) (coin-operated gaming devices)” after “(wagering)”. 1976—Subsec. (c). Pub. L. 94–455 struck out subsec. (c) which provided that all special taxes should be paid by stamp and made reference to subtitle F for authority of the Secretary to make assessments where special taxes have not been duly paid by stamp. 1970—Subsec. (a). Pub. L. 91–513 struck out references to tax imposed by section 4721 (narcotic drugs) and 4751 (marihuana). 1965—Subsec. (a). Pub. L. 89–44 substituted “4461(a)(1)” for “4461(2)”.
Statutory Notes and Related Subsidiaries
Effective Date
of 1978 AmendmentAmendment by Pub. L. 95–600 applicable with respect to years beginning after June 30, 1980, see section 521(d)(2) of Pub. L. 95–600, set out as a note under section 4402 of this title.
Effective Date
of 1976 AmendmentAmendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1904(d) of Pub. L. 94–455, set out as a note under section 4041 of this title.
Effective Date
of 1970 AmendmentAmendment by Pub. L. 91–513 effective on first day of seventh calendar month that begins after Oct. 26, 1970, see section 1105(a) of Pub. L. 91–513, set out as an
Effective Date
note under section 951 of Title 21, Food and Drugs.
Effective Date
of 1965 AmendmentAmendment by Pub. L. 89–44 applicable on and after July 1, 1965, see section 701(c)(2) of Pub. L. 89–44, set out in part as a note under section 4402 of this title.
Savings Provision
Prosecution for any violation of law occurring, and civil seizures or forfeitures and injunctive proceedings commenced, prior to the
Effective Date
of amendment of this section by section 1102 of Pub. L. 91–513 not to be affected or abated by reason thereof, see section 1103 of Pub. L. 91–513, set out as a note under section 171 of Title 21, Food and Drugs. Persons Engaged in Activities on December 1, 1974, Requiring Payment of Wagering TaxPerson on Dec. 1, 1974, engaging in an activity making him liable for payment of tax imposed by section 4411 of this title (as in effect on such date) to be treated as commencing such activity on such date for purposes of this section and section 4411 of this title, see section 3(d)(2) of Pub. L. 93–499, set out as a note under section 4411 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 4901
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73