PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1706 Definition.
"(3)
W I N N I N G S W H I C H ARE SUBJECT TO W I T H H O L D I N G. — For
purposes of this subsection, the term 'winnings which are subject to withholding' means proceeds from a wager determined in accordance with the following: " (A) IN GENERAL.—Except as provided i n subparagraph s (B) and (C), proceeds of more than $1,000 from a wagering transaction, if the amount of such proceeds is a t least 300 times as large as the amount wagered. " (B) STATE-CONDUCTED LOTTERIES.—Proceeds of more than
$5,000 from a wager placed in a lottery conducted by a n agency of a State acting under authority of State law, b u t only if such wager is placed with the State agency conducting such lottery, or with its authorized employees or agents. "(C)
SWEEPSTAKES, WAGERING POOLS, AND OTHER LOTTER-
IES.—Proceeds of more than $1,000 from a wager placed in a sweepstakes, wagering pool, or lottery (other than a wager described in subparagraph (B)). "(4)
RULES FOR DETERMINING PROCEEDS FROM A WAGER.—For
purposes of this subsection— " (A) proceeds from a wager shall be determined by reducing the amount received by the amount of the wager, and " (B) proceeds which are not money shall be taken into account a t their fair market value. "(5)
E X E M P T I O N FOR BINGO, KENO, AND SLOT M A C H I N E S. — The
tax imposed under paragraph (1) shall not apply to winnings from a slot machine, keno, and bingo. " (6) STATEMENT BY RECIPIENT.—Every person who is to receive
a payment of winnings which are subject to withholding shall furnish the person making such payment a statement, made under the penalties of perjury, containing the name, address, and taxpayer identification number of the person receiving the payment and of each person entitled to any portion of such payment. "(7)
26 USC 3403, 3404. 26 USC 6001, 7205.
COORDINATION W I T H OTHER SECTIONS.—For purposes of
sections 3403 and 3404 and for purposes of so much of subtitle F (except section 7205) as relates to this chapter, payments to any person of winnings which a r e subject to withholding shall be treated as if they were wages paid by an employer to a n employee." (e) W I T H H O L D I N G OF FEDERAL TAXES ON CERTAIN ENGAGED I N F I S H I N G. — (1) IN GENERAL.—
26 USC 3121.
INDIVIDUALS
(A) Section 3121(b) (defining employment) is amended by striking out " o r " at the end of paragraph (18), by striking out the period a t the end of paragraph (19) and inserting in lieu thereof "; or", and by adding after paragraph (19) the following new paragraph: "(20) service performed by an individual on a boat engaged in catching fish o r other forms of aquatic animal life under an arrangement with the owner or operator of such boat pursuant to which— " (A) such individual does not receive any cash remuneration (other than as provided in subparagraph (B)), " (B) such individual receives a share of the boat's ( o r the boats' in the case of a fishing operation involving more than one boat) catch of fish or other forms of aquatic animal
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