Rev. Rul. 56-113

The Regulations relating to Cigars and Cigarettes (manufacturers, importers, and dealers) and relating to Manufactured Tobacco (manufacturers, importers, and dealers) specify denominations of internal revenue stamps available for the payment of taxes on cigars, cigarettes, and manufactured tobacco, and provide that every manufacturer shall, before removal of such products subject to tax, securely affix to each package one or more stamps of such proper class and denominations as will fully taxpay the contents of the package. Held, since the Internal Revenue Code of 1954, and the pertinent regulations, do not prescribe or restrict the quantities of tobacco products which may be put up in packages for domestic sale or consumption, packages of various sizes may be approved for such tobacco products so long as sufficient tax stamps are affixed to the packages to fully taxpay the contents. For example, a manufacturer of cigars may package such products 60 to a package and affix thereto two internal revenue cigar tax stamps, one of denomination 50 and one of denomination 10, of the proper class, in payment of the tax thereon.