DEDUCTION
MEDIUM SAVINGS
INDIVIDUAL
Foreign Wagering Tax Exclusion
IRC §4404
Wagering taxes do not apply to wagers placed outside the United States by non-citizens/non-residents with foreign entities.
Eligibility
Applies to wagers accepted outside the U.S. and placed by persons not in the U.S. with non-U.S. citizens or residents.
Frequently Asked Questions
Who is eligible for the Foreign Wagering Tax Exclusion?
Applies to wagers accepted outside the U.S. and placed by persons not in the U.S. with non-U.S. citizens or residents.
How does the Foreign Wagering Tax Exclusion work?
Wagering taxes do not apply to wagers placed outside the United States by non-citizens/non-residents with foreign entities.
What law authorizes the Foreign Wagering Tax Exclusion?
The Foreign Wagering Tax Exclusion is authorized under IRC §4404 of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §4404
Source: Internal Revenue Code, Title 26, United States Code
§ 4404. Territorial extent
The tax imposed by this subchapter shall apply only to wagers(1) accepted in the United States, or
(2) placed by a person who is in the United States(A) with a person who is a citizen or resident of the United States, or
(B) in a wagering pool or lottery conducted by a person who is a citizen or resident of the United States.
(Aug. 16, 1954, ch. 736, 68A Stat. 525.)
Legal Sources
US Code (Official) — 26 USC §4404 → Cornell Law Institute — 26 USC §4404 → Search IRS.gov for IRC §4404 → Treasury Regulations (26 CFR) →Discovered by: discovery_engine_v1
Calculator handler: generic pattern