Form 730 is an IRS form that is also known as the Monthly Tax Return for Wagers. If you are in the business of accepting wagers or conducting wagering pools, you must file Form 730. If you received wagers for or on behalf of another person, you also need to file IRS Form 730.
How Is Form 730 Filled Out?
If you are not using form 730, enter your name, employer identification number, and address. Enter the month and year for which this form is filled. You can round the amount on Form 730, The Monthly Tax Return For Wagers, to whole dollars. Then you leave the entry for the cents blank. You can drop money which is less than 50 cents.
You can increase amounts, which are 50 cents or more, to the next whole dollar. If you do round, do it for all the money. You have to add two or more amounts to figure the amount on a line. Include cents when adding, and round off the total.
Because you are liable for the tax, file form 730 for each month. You have to report taxable wagers by the last day of the month following the month. When you file a return reporting page, the IRS will mail you Form 730, The Monthly Tax Return For Wagers, every three months with your information preprinted on it. The subject you have to remember is that the IRS will not send you any information that the refund will be made.
Whether or not you have taxable wagers to report, you have to file a return each month. If you have no tax to report, write none in the entry field on line 6. You have to sign and date Form 730. If you stop accepting wagers, check the final return box on the page.
What Do Taxable Wagers Include?
Taxable wagers include these items:
- A person engaged in the business of accepting wagers on sports or contests,
- If a wagering pool is conducted for profit in sports or contests,
- In a lottery conducted for profit, including the numbers game and all types of wagering.
Let’s explain places that need to fill out Form 730, The Monthly Tax Return For Wagers.
Sports event: A sport event includes every type of scholastic, amateur, and professional sport. For example, basketball, horse racing, golf, boxing, billiards, football, tennis, rugby, etc.
Contest: A contest is any competition involving skill, popularity, speed, strength, and politics. For example, beauty contests, marathons, elections, weightlifting, etc.
Wagering pool: This pool is conducted for profit and includes any method for giving prizes. A contest, one or more winning persons based on the outcome of sports or a combination of these sports, is conducted to make a profit.
Even if a direct profit does not occur, a wagering pool may be conducted for profit. If you operate the wagering pool with the expectation of a profit in the form of increased sales or other indirect benefits, you conduct it for profit.
Lottery: Lottery includes the numbers game, punch boards, policy, and similar types of wagering. A lottery conducted for profit includes any scheme or method. According to this method, prizes have to be distributed among those who pay for a chance.
In short, we mentioned in this article how to fill out Form 730, The Monthly Tax Return For Wagers. We also talked about who needs to fill out Form 730.