Rev. Rul. 54-293

Advice is requested whether the issuance of a bond insuring revenue stamps against theft, loss, or destruction would be acceptable to the Internal Revenue Service and whether beer stamps would be replaced under such a bond.

Section 3304 of the Internal Revenue Code provides in part that the Commissioner may, upon satisfactory evidence of the facts, make allowance for or redeem stamps issued under authority of law, to denote the payment of any internal revenue tax, as may have been spoiled, destroyed, or rendered useless or unfit for the purpose intended. It also provides that no allowance shall be made in any case until the stamps shall have been returned to the Commissioner, or until satisfactory proof has been made showing the reason why the stamps cannot be returned.

It is held that a claim for redemption or refund for the value of beer stamps cannot be allowed unless the stamps are surrendered or there is evidence satisfactorily establishing that the stamps were destroyed. Each claim filed for redemption or refund of the value of beer stamps will be considered on its merits after it has been filed pursuant to prescribed procedure.

The issuance of a bond to insure revenue stamps against loss, destruction, spoilage, etc., would be a commercial transaction between the surety and the principal on the bond which would not affect the decision of the Internal Revenue Service upon the merits of any claim filed under the authority of section 3304 of the Code.