IRS Form 11-C: Occupational Tax and Registration Return for Wagering
Form 11-C is used by the agents or principals who accept the taxable wagers. The IRS Form 11-C is used to register certain information with the Internal Revenue Service (IRS), and is used in order to pay the occupational tax on wagering. An individual should pay the occupational tax if the individual accepts taxable wagers for themselves or another person.
There are two amounts of occupational tax: $50 or $500. For bookies(also known as bookmakers) accepting legal wagers, the occupation tax is $50. For the bookies who are working in areas where gambling is illegal, the tax is $500. Overpayment tax credit is applicable for the Form 11-C and the refund can be claimed on the Form 8849, Claim for Refund of Excise Taxes, using the Schedule 6.
Who Must File the Form 11-C?
If you are a principal or an agent, you need to file Form 11-C.
1. A principal accepts taxable wagers for his or her own account in the business. This person is responsible to make a profit or risks loss depending on the outcome of the event or contest for which the wager is accepted.
2. An agent accepts taxable wagers on the behalf of principal. Taxable wagers include those placed:
- On a sports event or contest with a person engaged in the business of accepting wagers on a sports event or contest.
- In a wagering pool on a sports event or contest if the pool is conducted for profit.
- In a lottery conducted for profit (other than a state conducted lottery). The term lottery includes the numbers game, policy, punch boards, and similar types of wagering.
What is Not Taxed?
The Form 11-C tax is not taxable on the following five items:
- A pari-mutuel wagering enterprise, including dog racing, horse racing, and jai alai, if licensed under the accepted state laws.
- Coin-operated devices, like pinball machines.
- Sweepstakes, lotteries or wagering pools conducted by a state agency, if the wager is placed with the state agency or its authorized agents or employees.
- Games of the type in which usually 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 or 521, as long as the net proceeds of the drawing do not inure to the benefit of a private shareholder or individual.
When to File the Form 11-C?
File the first tax return before the wagers are accepted. After that, you must file a renewal return by July 1st for each year. The first return is also due in certain conditions in that has been a change in ownership or control. The tax return must be filed within 30 days after new members are admitted to a firm or partnership, a corporation is formed to continue the business of a partnership, or a stockholder continues the business of a dissolved corporation.
Claim Form 11-C Overpayment Tax Credits with Tax2efile
Tax2efile offers e-filing services for the Form 8849, Schedule 6 for the Forms 720, 730, 11-C, and 2290. We are planning on expanding and giving you other schedules in the future .When tax credits exceed on your Form 11-C before the tax due, our system will automatically generate the Form 8849 with offset credits from the Form 11-C. After this form is filed and submitted to the IRS, IRS will send you a letter as proof of registration and payment.
If you need any support with tax preparation and reporting while filing a Claim of Excise Tax Form 8849, contact us.We are also offer bulk pricing so you can e-file multiple Form 8849’s for one low price!