26 U.S.C. § 6419: Excise tax on wagering

Summary

If someone paid too much of the wagering tax, they can only get a refund or credit if they prove one of three things: they did not collect the tax from the person who placed the bet, they repaid that tax to the bettor, or they have the bettor’s written permission to allow the refund or credit. If a bet was laid off (when part or all of a bet is passed to another person), the person who accepted that laid-off bet must show those same proofs for both the person who laid off the bet and the original bettor. If a taxpayer lays off part or all of a wager with another person who also owes tax on that amount, the taxpayer can get a refund or credit equal to the same share of the tax as the share of the original bet that was laid off. These refunds or credits must follow the Secretary’s rules, and no interest will be paid on them.

Title 26, §6419

Internal Revenue Code, Source: USLM XML via OLRC

(a)Credit or refund generally

No overpayment of tax imposed by chapter 35 shall be credited or refunded (otherwise than under subsection (b)), in pursuance of a court decision or otherwise, unless the person who paid the tax establishes, in accordance with regulations prescribed by the Secretary, (1) that he has not collected (whether as a separate charge or otherwise) the amount of the tax from the person who placed the wager on which the tax was imposed, or (2) that he has repaid the amount of the tax to the person who placed such wager, or unless he files with the Secretary written consent of the person who placed such wager to the allowance of the credit or the making of the refund. In the case of any laid-off wager, no overpayment of tax imposed by chapter 35 shall be so credited or refunded to the person with whom such laid-off wager was placed unless he establishes, in accordance with regulations prescribed by the Secretary, that the provisions of the preceding sentence have been complied with both with respect to the person who placed the laid-off wager with him and with respect to the person who placed the original wager.

(b)Credit or refund on wagers laid-off by taxpayer

Where any taxpayer lays off part or all of a wager with another person who is liable for tax imposed by chapter 35 on the amount so laid off, a credit against such tax shall be allowed, or a refund shall be made to, the taxpayer laying off such amount. Such credit or refund shall be in an amount which bears the same ratio to the amount of tax which such taxpayer paid on the original wager as the amount so laid off bears to the amount of the original wager. Credit or refund under this subsection shall be allowed or made only in accordance with regulations prescribed by the Secretary, and no interest shall be allowed with respect to any amount so credited or refunded.

Editorial Notes

Amendments

1976—Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

§6419 Excise Tax on Wagering

Summary

Title 26, §6419

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata