Title 26, Internal Revenue CodeRelease 119-110
§4411 Imposition of Tax
Title 26 › Subtitle D — Miscellaneous Excise Taxes › CHAPTER 35 — TAXES ON WAGERING › Subchapter B — Occupational Tax › § 4411
Summary
A yearly special tax of $500 must be paid by anyone who owes the tax under section 4401 or who takes bets for someone who owes that tax. If a person’s duty to pay comes only from paragraph (1) of section 4401(a), or they take bets only for such people, the yearly tax is $50 instead of $500.
Full Legal Text
Title 26, §4411
Internal Revenue Code, Source: USLM XML via OLRC
(a)In general
There shall be imposed a special tax of $500 per year to be paid by each person who is liable for the tax imposed under section 4401 or who is engaged in receiving wagers for or on behalf of any person so liable.
(b)Authorized persons
Subsection (a) shall be applied by substituting “$50” for “$500” in the case of— (1)
(2)any person who is engaged in receiving wagers only for or on behalf of persons described in paragraph (1).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1982—Pub. L. 97–362 designated existing provisions as subsec. (a), in subsec. (a), as so designated, substituted “liable for the tax imposed” for “liable for tax”, and added subsec. (b). 1974—Pub. L. 93–499 substituted “$500” for “$50”.
Statutory Notes and Related Subsidiaries
Effective Date
of 1982 Amendment Pub. L. 97–362, title I, § 109(c)(2), Oct. 25, 1982, 96 Stat. 1731, provided that: “The amendment made by subsection (b) [amending this section] shall take effect on July 1, 1983.”
Effective Date
of 1974 AmendmentAmendment by Pub. L. 93–499 effective Dec. 1, 1974, and applicable only with respect to wagers placed on or after such date, see section 3(d)(1) of Pub. L. 93–499, set out as a note under section 4401 of this title. Persons Engaged in Activities on
December 1, 1974, Requiring Payment of Tax; Persons Paying Tax and Registering Before
December 1, 1974 Pub. L. 93–499, § 3(d)(2), Oct. 29, 1974, 88 Stat. 1551, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “(A) Any person who, on
December 1, 1974, is engaged in an activity which makes him liable for payment of the tax imposed by section 4411 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as in effect on such date) shall be treated as commencing such activity on such date for purposes of such section and section 4901 of such Code. “(B) Any person who, before
December 1, 1974.—“(i) became liable for and paid the tax imposed by section 4411 of the Internal Revenue Code of 1986 (as in effect on
July 1, 1974) for the year ending
June 30, 1975, shall not be liable for any additional tax under such section for such year, and “(ii) registered under section 4412 of such Code (as in effect on
July 1, 1974) for the year ending
June 30, 1975, shall not be required to reregister under such section for such year.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 4411
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110