528
INTERNAL REVENUE CODE OF 1954
Subchapter C—Miscellaneous Provisions Sec. 4421. Definitions. Sec. 4422. Applicability of federal and state laws. Sec. 4423. Inspection of books. SEC. 4421. DEFINITIONS.
For purposes of this chapter— (1) WAGER.—The term "wager" means— (A) any wager with respect to a sports event or a contest placed with a person engaged in the business of accepting such wagers, (B) any wager placed in a wagering pool with respect to a sports event or a contest, if such pool is conducted for profit, and (C) any wager placed in a lottery conducted for profit. (2) LOTTERY.—The term "lottery" includes the numbers game, policy, and similar types of wagering. The term does not include— (A) any game of a type in which usually (i) the wagers are placed, (ii) the winners are determined, and (iii) the distribution of prizes or other property is made, in the presence of all persons placing wagers in such game, and (B) any drawing conducted by an organization exempt from tax under sections 501 and 521, if no part of the net proceeds derived from such drawing inures to the benefit of any private shareholder or individual. SEC. 4422. APPLICABILITY OF FEDERAL AND STATE LAWS.
The payment of any tax imposed by this chapter with respect to any activity shall not exempt any person from any penalty provided by a law of the United States or of any State for engaging in the same activity, nor shall the payment of any such tax prohibit any State from placing a tax on the same activity for State or other purposes. SEC. 4423. INSPECTION OF BOOKS.
Notwithstanding section 7605(b), the books of account of any person liable for tax under this chapter may be examined and inspected as frequently as may be needful to the enforcement of this chapter.
§4421
�
