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ITG FAQ #5 Answer-Where a third-party "operator" conducts the wagering pool activity, who is the party liable for any wagering tax?

Where a third-party "operator" conducts the wagering pool activity on behalf of a tribe, tribal village, charity, or municipal government ("permittee") such as occurs in Alaska, who is the party liable for any wagering tax?

The tax liability and the filing of Form 730, Tax on Wagering, is a joint and several liability between the permittee and the operator. This position has been affirmed in the case of Alaska Chiropractic Society, et al v. United States. The Occupational Tax would be imposed on any individual accepting wagers, as well as the permittee and operator.

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Page Last Reviewed or Updated: 02-Aug-2016