Form 730 (Rev. 12-2017)
Sports event. A sports event includes
every type of amateur, scholastic, or
professional sports competition, such as auto
racing, baseball, basketball, billiards, bowling,
boxing, cards, checkers, cricket, croquet, dog
racing, football, golf, gymnastics, hockey,
horse racing, lacrosse, rugby, soccer, squash,
tennis, track, tug of war, and wrestling.
Contest. A contest is any competition
involving speed, skill, endurance, popularity,
politics, strength, or appearance, such as
elections, the outcome of nominating
conventions, dance marathons, log-rolling
contests, wood-chopping contests,
weightlifting contests, beauty contests, and
Wagering pool. A wagering pool
conducted for profit includes any method or
scheme for giving prizes to one or more
winning bettors based on the outcome of a
sports event, a contest, or a combination or
series of these events or contests if the
wagering pool is managed and conducted for
the purpose of making a profit. A wagering
pool or lottery may be conducted for profit
even if a direct profit doesn’t occur. If you
operate the wagering pool or lottery with the
expectation of a profit in the form of increased
sales, attendance, or other indirect benefits,
you conduct it for profit.
Lottery. This includes the numbers game,
policy, punch boards, and similar types of
wagering. In general, a lottery conducted for
profit includes any method or scheme for the
distribution of prizes among persons who
have paid or promised to pay for a chance to
win the prizes. The winning prizes are usually
determined by the drawing of numbers,
symbols, or tickets from a wheel or other
container, or by the outcome of a given event.
It doesn’t include either of the following
kinds of events.
• Games of a type in which usually the wagers
are placed, winners are determined, and the
prizes are distributed in the presence of
everyone who placed a wager. Card games,
roulette games, dice games, bingo, keno, and
gambling wheels usually fall within this
• Drawings conducted by a tax-exempt
organization, if the net proceeds of the
drawing don’t benefit a private shareholder or
What isn’t taxed. The tax isn’t imposed on
the following five items.
• Parimutuel wagering, including horse racing,
dog racing, and jai alai, when it’s licensed
under state law.
• Coin-operated devices, such as slot
machines, pinball machines, or video games.
• Sweepstakes, wagering pools, or lotteries
that are conducted by an agency of a state, if
the wager is placed with the state agency or
its authorized agents or employees.
• Games of the type in which all persons
placing wagers in the game are present when
wagers are placed, winners are determined,
and prizes or other property are distributed.
• Drawings conducted by an organization
exempt from tax under sections 501 and 521,
as long as the net proceeds of the drawing
don’t benefit a private shareholder or
Line 2. Enter the gross amount of any laid-off
wagers accepted during the month. Gross
laid-off wagers are the total of those laid-off
wagers that are authorized and those that
aren’t authorized by the state in which they
Lines 4a and 4b. Enter the applicable amount
included in line 3. Multiply the amount by the
rate shown and enter the result. The rate of
tax depends on whether the wager is
authorized by the laws of the state in which
the wager was accepted. The lower rate
applies to wagers that are authorized by state
Line 5. You may be able to claim a credit for
the amount of any overpayment of tax or for
the amount of tax imposed with respect to a
wager that you laid off. You may also use
Schedule 6 (Form 8849), Other Claims, to
make a claim for refund.
Credit for an overpayment of tax.
Generally, you may claim a credit for any
overpayment of tax. The claim must be filed
within 3 years from the time the Form 730
reporting the tax was filed or 2 years from the
time the tax was paid, whichever is later. No
credit is allowed unless a statement of the
facts involving the overpayment is attached
that includes the following information.
• An explanation of the reason for claiming a
• The date of payment and the amount of the
• Whether any previous claim covering the
amount involved, or any part, has been filed.
• A statement that you:
1. Haven’t collected (whether as a separate
charge or otherwise) the amount of the tax
from the person that placed the wager on
which the tax was imposed, or
2. Have repaid the amount of the tax to the
person that placed the wager, or
3. Have the written consent of the person
that placed the wager to the allowance of the
credit. The consent must be attached to the
Note. If the overpayment relates to a laid-off
wager accepted by you, one of the three
statements in the previous bullet must be
attached for both the person who placed the
laid-off wager with you and the person who
placed the original wager.
Credit for wagers laid off by you. If you
accept a wager and lay off all or a part of that
wager with a person who is liable for tax,
follow the rules below to claim a credit
depending on whether or not you paid the tax.
If you haven’t paid the tax, you may claim a
credit on Form 730 in the amount of the tax
due for the laid-off wager, if the certificate
described in Regulations section 44.6419-2(d)
is attached to Form 730 for the month during
which the wager was accepted and laid off.
If you have paid the tax, you may claim a
credit for the tax paid on the laid-off amount.
The claim must be filed within 3 years from
the time the return reporting the tax was filed
or 2 years from the time the tax was paid,
whichever is later. Interest won’t be allowed
on a credit for the tax imposed on a wager
that you laid off.
No credit is allowed unless the following
information is attached to the return for each
• The certificate described in Regulations
• A statement that includes (a) the reason for
the credit, (b) the month in which the tax was
paid, (c) the date of payment, and (d) whether
any previous claim covering all or part of the
amount involved has been filed.
Line 6. If line 4c is more than line 5, enter the
difference on line 6. You don’t have to pay if
line 6 is under $1.00. You may pay the
amount shown on line 6 using the Electronic
Federal Tax Payment System (EFTPS) or by
check or money order. If you pay using
EFTPS, don’t file Form 730-V, Payment
Electronic payment. Now, more than ever
before, businesses can enjoy the benefits of
paying their federal taxes electronically.
Whether you rely on a tax professional or
handle your own taxes, the IRS offers you a
convenient program to make it easier. Spend
less time on taxes and more time running your
business. Use EFTPS to your benefit. For
information on EFTPS, visit www.eftps.gov or
call EFTPS Customer Service at
Paid Preparer Use Only
A paid preparer must sign Form 730 and
provide the information in the Paid Preparer
Use Only section at the end of the form if the
preparer was paid to prepare the form and
isn’t an employee of the filing entity. The
preparer must give you a copy of the form in
addition to the copy to be filed with the IRS.
If you’re a paid preparer, enter your
Preparer Tax Identification Number (PTIN) in
the space provided. If you work for a tax
preparation firm, you must also enter the
firm’s name, address, and EIN. However, you
can’t use the PTIN of the tax preparation firm
in place of your PTIN.
You can apply for a PTIN online or by filing
Form W-12, IRS Paid Preparer Tax
Identification Number (PTIN) Application and
Renewal. For more information about applying
for a PTIN online, visit the IRS website at