Do you want to be a Bookie? Don't Forget Your Form 11-C
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