In the near future, daily fantasy sports entry fees could be considered wagers and subject to the federal excise tax.
The tax of 0.25% is applied to all sports wagers and all daily fantasy sports contest entry fees.
Right now, an Internal Memo issued by the IRS is just a memo, so it is unclear how the IRS will use this internal guidance to enact the tax.
This tax has long been present in sports wagering, but not enforced upon daily fantasy sports operators.
Read the full memo here.
As additional guidance is released as to how the IRS plans to enact this tax, RubinBrown will share more information.
Readers should not act upon information presented without individual professional consultation.
Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.
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