Rev. Rul. 56-150

Advice has been requested whether a claim, filed after the expiration date of the statutory period of limitation, for redemption of cigarette tax stamps allegedly attached to cigarettes withdrawn from the market, can be allowed where the cigarettes were held in custody by a United States marshal.

Tobacco tax stamps purchased prior to January 1, 1955, are subject to redemption under section 2198 of the Internal Revenue Code of 1939. This section provides, in part, that internal revenue tax stamps affixed to packages of tobacco products withdrawn from the market by a manufacturer or importer may be redeemed, provided claim for their redemption is presented by the manufacturer or importer within three years after the year of issue, as indicated by the series number printed thereon by the Government, irrespective of the date of their purchase. Stamps purchased on or after January 1, 1955, are subject to redemption pursuant to section 5705 of the Internal Revenue Code of 1954, which provides that claims must be filed within three years of the date of payment of the tax.

In view of the specific provisions of the statutes, the fact that the tobacco products were held in custody by a United States marshal does not stop the running of the period of limitation set forth therein or extend such period. Accordingly, although the tobacco products withdrawn from the market were held in custody by a United States marshal, a claim for redemption of the tax stamps attached to such tobacco products cannot be allowed where claim therefor is filed by the manufacturer or importer after the period of limitation prescribed by section 2198 of the 1939 Code or section 5705 of the 1954 Code, as the case may be, has expired.