Rev. Rul. 56-193

Advice has been requested whether it is necessary to cancel internal revenue tax stamps affixed to packages of tobacco products under the provisions of the Internal Revenue Code of 1954 and the regulations promulgated thereunder.

The Regulations relating to Cigars and Cigarettes (Manufacturers, Importers, and Dealers) and the Regulations relating to Manufactured Tobacco (Manufacturers, Importers, and Dealers) make no provision for the cancellation of internal revenue tax stamps affixed to packages of tobacco products. Such regulations do require that the tobacco tax stamps be securely affixed to the packages. Although prior regulations required that the stamps either be affixed in such manner as to seal the package or be canceled, experience has demonstrated that such requirements served no useful purpose, and, as of the effective dates of the regulations referred to above, manufacturers of cigars, cigarettes, and manufactured tobacco have not been required to cancel the internal revenue tobacco tax stamps regardless of their location on packages.