Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 55-46

1955-1 C.B. 126

Caution: Obsoleted by Rev. Rul. 69-227

IRS Headnote

The rules on section 1802 of the Internal Revenue Code of 1939 contained in Regulations 71 should be applied to section 4321 of the Internal Revenue Code of 1954 until the regulations are issued under section 4321.

Full Text

Rev. Rul. 55-46

Advice has been requested relative to the computation of the documentary stamp tax on sales and transfers of capital stock under section 4321(1) of the Internal Revenue Code of 1954 on and after January 1, 1955, the effective date of such section, in view of the difference in wording between that section and section 1802(b), the corresponding section of the Internal Revenue Code of 1939.

Under the provisions of section 1802(d) of the 1939 Code a stamp tax was imposed on sales and transfers of capital stock at specified rates on each $100 of the par value or fraction thereof of the certificates sold or transferred. The methods of computing the tax imposed by section 1802(b) on the sale or transfer of shares or certificates of stock are stated in section 113.32 of Regulations 71.

Treasury Decision 6091, C.B. 1954-2, 47, approved August 16, 1954, prescribing stopgap regulations under the Internal Revenue Code of 1954, provides, in part:

All regulations (including all Treasury Decisions) * * * applicable under any provision of law in effect on the date of enactment of the 1954  Code, to the extent such provision of law is repealed by the Code, are hereby prescribed under the made applicable to the provisions of the Code corresponding to the provision of law so repealed insofar as any such regulation is not inconsistent with the Code. Such regulations shall become effective as regulations under the various provisions of the Code as of the dates the corresponding provisions of law are repealed by the Code, until superseded by regulations issued under the Code.

The reports on the 1954 Code submitted by the committees of both houses of Congress state that any changes in the excise tax statutes under the new Code would be structural rather than substantive. In view of the foregoing, the rules on section 1802 of the 1939 Code contained in Regulations 71 should be applied to section 4321 of the 1954 Code until the regulations are issued under section 4321