Internal Revenue Code · 26 U.S.C.
§ 4401. Imposition of tax
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 4401
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- September 2, 1958 by Pub. L. 85–859
- Last amended
- October 25, 1982 by Pub. L. 97–362
- Amendments
- 3 dated changes in the source credit
- Length
- 3 subsections · 312 words · about 1 min to read
- Cross-references
- cites 1; cited by 1 Code section and 20 other regulations
- Regulations
- 3 issued under this section
There shall be imposed on any wager authorized under the law of the State in which accepted an excise tax equal to 0.25 percent of the amount of such wager.
There shall be imposed on any wager not described in paragraph (1) an excise tax equal to 2 percent of the amount of such wager.
In determining the amount of any wager for the purposes of this subchapter, all charges incident to the placing of such wager shall be included; except that if the taxpayer establishes, in accordance with regulations prescribed by the Secretary, that an amount equal to the tax imposed by this subchapter has been collected as a separate charge from the person placing such wager, the amount so collected shall be excluded.
Each person who is engaged in the business of accepting wagers shall be liable for and shall pay the tax under this subchapter on all wagers placed with him. Each person who conducts any wagering pool or lottery shall be liable for and shall pay the tax under this subchapter on all wagers placed in such pool or lottery. Any person required to register under section 4412 who receives wagers for or on behalf of another person without having registered under section 4412 the name and place of residence of such other person shall be liable for and shall pay the tax under this subchapter on all such wagers received by him.
(Aug. 16, 1954, ch. 736, 68A Stat. 525; Pub. L. 85–859, title I, § 151(a), Sept. 2, 1958, 72 Stat. 1304; Pub. L. 93–499, § 3(a), Oct. 29, 1974, 88 Stat. 1550; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–362, title I, § 109(a), Oct. 25, 1982, 96 Stat. 1731.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 4401
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 1 other section
Cited by 1 Code section
Cited in 20 regulations not issued under it
- § 44.0-1 Introduction.
- § 44.4402-1 Exemptions.
- § 44.4403-1 Daily record.
- § 44.4404-1 Territorial extent.
- § 44.4411-1 Imposition of tax.
- § 44.4901-1 Payment of special tax.
- § 44.6001-1 Record requirements.
- § 44.6011(a)-1 Returns.
- § 44.6060-1 Reporting requirements for tax return preparers.
- § 44.6107-1 Tax return preparer must furnish copy of return to taxpayer and must retain a copy or record.
- § 44.6109-1 Tax return preparers furnishing identifying numbers for returns or claims for refund.
- § 44.6151-1 Time and place for paying taxes.
- § 44.6419-1 Credit or refund generally.
- § 44.6419-2 Credit or refund on wagers laid off by taxpayer.
- § 44.6694-1 Section 6694 penalties applicable to tax return preparer.
- § 44.6694-2 Penalties for understatement due to an unreasonable position.
- § 44.6694-3 Penalty for understatement due to willful, reckless, or intentional conduct.
- § 44.6694-4 Extension of period of collection when preparer pays 15 percent of a penalty for understatement of taxpayer's liability and certain other procedural matters.
- § 44.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.
- § 44.6696-1 Claims for credit or refund by tax return preparers.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
Nearby sections
- § 4401 Imposition of tax
- § 4402 Exemptions
- § 4403 Record requirements
- § 4404 Territorial extent
- § 4405 Cross references
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1982—Subsec. (a). Pub. L. 97–362 substituted provision that there shall be imposed on any wager authorized under the law of the State in which accepted an excise tax equal to 0.25 percent of the amount of such wager and that there shall be imposed on any other wager an excise tax equal to 2 percent of the amount of such wager for provision that there be imposed on wagers, as defined in section 4421, an excise tax equal to 2 percent of the amount thereof.
1976—Subsec. (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
1974—Subsec. (a). Pub. L. 93–499 substituted “2 percent” for “10 percent”.
1958—Subsec. (c). Pub. L. 85–859 made all persons required to register under section 4412 of this title who receive wagers for or on behalf of another person without having registered under section 4412 of this title the name and place of residence of such other person liable for the tax on all such wagers received by them.
Statutory Notes and Related Subsidiaries
Effective Date of 1982 Amendment
Pub. L. 97–362, title I, § 109(c)(1), Oct. 25, 1982, 96 Stat. 1731, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on January 1, 1983.”
Effective Date of 1974 Amendment
Pub. L. 93–499, § 3(d)(1), Oct. 29, 1974, 88 Stat. 1551, provided that: “The amendments made by this section [enacting section 4424 and amending this section and section 4411 of this title] take effect on December 1, 1974, and shall apply only with respect to wagers placed on or after such date.”
Effective Date of 1958 Amendment
Pub. L. 85–859, title I, § 151(b), Sept. 2, 1958, 72 Stat. 1304, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to wagers received after the date of the enactment of this Act [Sept. 2, 1958].”