Rev. Rul. 55-722

Advice has been requested whether internal revenue tobacco products tax stamps may be acquired by philatelists.

Section 5703(b) of the Internal Revenue Code of 1954 provides that stamps may be prescribed to evidence the tax or indicate compliance with chapter 52 of the Code relating to the tax on tobacco, cigars, cigarettes, and cigarette papers and tubes. Section 5752 thereof provides that no person shall (1) empty and package without destroying the stamp; (2) remove, or cause to be removed, any such stamp, or purchase, receive, possess, sell, or dispose of, by gift or otherwise, any such stamp which has been so removed; or (3) purchase, receive, possess, sell, or dispose of, by gift or otherwise, any such package which has been emptied, upon which the stamp has not been destroyed.

Under the Regulations relating to Cigars and Cigarettes (Manufacturers, Importers, and Dealers) and the Regulations relating to Manufactured Tobacco (Manufacturers, Importers, and Dealers) implementing the provisions of the Internal Revenue Code of 1954, such stamps are issued for sale solely to manufacturers and importers liable to pay Federal tax on tobacco products for the purpose of denoting payment of such tax. The regulations require that every package containing cigars, cigarettes, or manufactured tobacco must bear a warning reading `Law forbids the reuse of the Federal stamps hereon and requires the person who empties this package to destroy such stamps when the package is emptied.'

In view of the above requirements of the law and regulations, no person may keep in his possession a tobacco products tax stamp which has been used to denote payment of tax on such products once the package has been emptied. Further, the acquisition of new or unused stamps as a collector's or philatelic item is contrary to the intent of the law and regulations governing the sale, issuance, and use of such stamps, and is not permitted