Internal Revenue Service
Revenue Ruling

TaxLinks.com   sm

 Rev. Rul. 55-50

1955-1 C.B. 506

Caution: Obsoleted by Rev. Rul. 69-227

Full Text

Rev. Rul. 55-50

A company sells booklets containing coupons which are honored for admissions to certain places of entertainment. Such booklets also contain coupons which may be exchanged for the use of recreational facilities, such as golf courses and bowling alleys. The monetary value of the coupons contained in a booklet is greatly in excess of the nominal amount for which the booklet is sold. Such booklets are published by the company as a general advertising and promotional service for the persons participating in the plan, and the company retains the total amount received from their sale as remuneration for its advertising and promotional service. Held , since the person granting the admission does not receive any part of the amount paid for the booklets containing the coupons, no part  of such amount represents an amount paid for admission within the meaning of section 1700 of the Internal Revenue Code of 1939, and, accordingly, is not subject to the tax imposed by that section