Rev. Rul. 55-107

SECTION 1. PURPOSE.

The purpose of this Revenue Ruling is to provide an interim procedure for affixing adhesive stamps to packages or boxes of white phosphorus matches and imported oleomargarine, and to contracts or memoranda in the case of cotton futures, as evidence of the payment of the internal revenue taxes imposed by law.

SEC. 2. BACKGROUND.

Section 4801 of the Internal Revenue Code of 1954 imposes a tax at the rate of 2 cents hundred on white phosphorus matches, and section 4803 provides that this tax shall be represented by adhesive stamps. Section 4591 imposes a tas of 15 cents per pound on all oleomargarine imported from foreign countries, and states this tax will be represented by coupon stamps. Section 4851 imposes an excise tax of 2 cents for each pound of cotton involved in any contract of sale of such cotton for future delivery, subject to certain exemptions, and section 4871 provides that this tax shall be paid by means of stamps. It is not anticipated that there will be many, if any, cases which will require the imposition of these taxes. Under the circumstances, it is not contemplated that special internal revenue stamps will be provided for use in evidencing the payment of the taxes in these 3 instances.

SEC. 3. PROCEDURE.

Until further notice, any orders for stamps for use in taxpaying the articles and the transactions mentioned herein will be filled by District Directors by furnishing documentary internal revenue stamps in the appropriate denominations. Upon presentation of a requisition, taxpayers will be advised by letter that no special types of stamps have been provided, and that the documentary stamps should be affixed to the packages, boxes or contracts and canceled in the manner set forth in the regulations on documentary stamp taxes