26 USC § 4901 - Payment of tax

---
identifier: "/us/usc/t26/s4901"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 4901 - Payment of tax"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "4901"
section_name: "Payment of tax"
chapter_number: 40
chapter_name: "GENERAL PROVISIONS RELATING TO OCCUPATIONAL TAXES"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 16, 1954, ch. 736, 68A Stat. 593; Pub. L. 89–44, title IV, § 405(b), June 21, 1965, 79 Stat. 149; Pub. L. 91–513, title III, § 1102(a), Oct. 27, 1970, 84 Stat. 1292; Pub. L. 94–455, title XIX, § 1904(a)(19), Oct. 4, 1976, 90 Stat. 1814; Pub. L. 95–600, title V, § 521(c)(2), Nov. 6, 1978, 92 Stat. 2884.)"
---


# § 4901. Payment of tax

**(a)** **Condition precedent to carrying on certain business** No person shall be engaged in or carry on any trade or business subject to the tax imposed by section 4411 (wagering) until he has paid the special tax therefor.

**(b)** **Computation** All special taxes shall be imposed as of on the first day of July in each year, or on commencing any trade or business on which such tax is imposed. In the former case the tax shall be reckoned for 1 year, and in the latter case it shall be reckoned proportionately, from the first day of the month in which the liability to a special tax commenced, to and including the 30th day of June following.

---

**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 593; Pub. L. 89–44, title IV, § 405(b), June 21, 1965, 79 Stat. 149; Pub. L. 91–513, title III, § 1102(a), Oct. 27, 1970, 84 Stat. 1292; Pub. L. 94–455, title XIX, § 1904(a)(19), Oct. 4, 1976, 90 Stat. 1814; Pub. L. 95–600, title V, § 521(c)(2), Nov. 6, 1978, 92 Stat. 2884.)

## Editorial Notes

### Amendments

1978—Subsec. (a).  struck out “or 4461(a)(1) (coin-operated gaming devices)” after “(wagering)”.

1976—Subsec. (c).  struck out subsec. (c) which provided that all special taxes should be paid by stamp and made reference to subtitle F for authority of the Secretary to make assessments where special taxes have not been duly paid by stamp.

1970—Subsec. (a).  struck out references to tax imposed by sections 4721 (narcotic drugs) and 4751 (marihuana).

1965—Subsec. (a).  substituted “4461(a)(1)” for “4461(2)”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1978 Amendment

Amendment by  applicable with respect to years beginning after , see , set out as a note under .

### Effective Date of 1976 Amendment

Amendment by  effective on first day of first month which begins more than 90 days after , see , set out as a note under .

### Effective Date of 1970 Amendment

Amendment by  effective on first day of seventh calendar month that begins after , see , set out as an Effective Date note under , Food and Drugs.

### Effective Date of 1965 Amendment

Amendment by  applicable on and after , see , set out in part as a note under .

### Savings Provision

Prosecution for any violation of law occurring, and civil seizures or forfeitures and injunctive proceedings commenced, prior to the effective date of amendment of this section by  not to be affected or abated by reason thereof, see , set out as a note under , Food and Drugs.

### Persons Engaged in Activities on December 1, 1974, Requiring Payment of Wagering Tax

Person on , engaging in an activity making him liable for payment of tax imposed by  (as in effect on such date) to be treated as commencing such activity on such date for purposes of this section and , see , set out as a note under .