Rev. Rul. 56-295

The Internal Revenue Service has received numerous inquires relative to possible violation of the law where internal revenue stamps are affixed to the backs of packages of cigarettes since the stamps will not be broken or damaged when opening the package. Section 5752 of the Internal Revenue Code of 1954 provides that no person shall empty any package of cigarettes without destroying the internal revenue stamp thereon. While the statutory requirement is mandatory, the penal and civil provisions of Sections 5762(b) and 5761(a) are enforced only where the failure to destroy the stamp is willful or with intent to defraud the revenue. There is no requirement that the stamp be broken upon opening a package of cigarettes. Since the law does not specify the particular location on packages where stamps must be affixed, the placing of the stamp on the back of the package of cigarettes does not contravene the law. See Rev. Rul. 56-114, page 546 of this Bulletin.