The tax attaches when (a) a person engaged in the business of accepting wagers with
respect to a sports event or a contest, or (b) a person who operates a wagering pool
or lottery for profit, accepts a wager or contribution from a bettor. In the case of a wager on credit, the tax attaches whether or not the amount of
the wager is actually collected from the bettor. However, if an amount equivalent to the amount of the wager is paid to the bettor
prior to the close of the calendar month in which such wager was accepted, either
because of the cancellation of the event upon which the wager was placed, or because
the wager was cancelled or rescinded by mutual agreement, the wager need not be reported
on the taxpayer's return for such month. Where such cancellation or rescission takes place in a month subsequent to the month
in which the wager was accepted, credit or refund of the tax paid with respect to
such wager may be made subject to the provisions of § 44.6419–1.
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