It's that time of the year again, football is back, basketball is about the start and yes who can forget hockey. Along with sports comes sports betting.
If you want to be a Bookie, then don’t forget to file your form Form 11-C - Occupational Tax and Registration Return for Wagering.
If you accept taxable wagers for yourself and or for another persons, you have to file form 11-C. Form 11-C is used by “agents” or “principals” who accept the taxable wagers to pay the occupational tax on wagering.
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. How much sense does this make will you apply for a licenseand pay $500, aren't you admitting that you're committing an illegal act?Who is a principal? It is one who accepts taxable wagers for his or her own account in the business. This person is responsible for either making a profit or risks losses depending on the outcome of the event or contest for which the wager is accepted. On the other hand, an agent accepts taxable wagers on the behalf of principal. Both have to file Form 11-C. But don’t get confused, illegal gambling is still a illegal gambling.
But if you are going accept wages don’t forget to file the 11-C. There are other issues and forms that you need to be aware if you engage in gambling activities or are planning to engage in gambling activities. You should seek the guidance from a professional to know what you have to do to comply with the tax laws. By: Luis O Rivera, CPA, CFF, CFE, CGMA, PI
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Read more at: Tax Times blog