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Revenue Ruling

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 Rev. Rul. 56-40

1956-1 C.B. 516

Caution: Obsoleted by Rev. Rul. 69-227

Full Text

Rev. Rul. 56-40

Pursuant to the exemption provisions of section 4233(a)(1)(C) of the Internal Revenue Code of 1954, the tax on admissions does not apply in the case of any athletic event between educational institutions held during the regular athletic season for such event, if the proceeds therefrom inure exclusively to the benefit of such institutions. Held , a playoff game or other athletic event between educational institutions, which is necessary to settle a conference, state, or sectional championship, is considered an event held during the regular season for the purpose of the exemption, and amounts paid for admissions thereto are not subject to tax, provided the proceeds therefrom inure exclusively to the benefit of the participating institutions. However, the tax on admissions applies to a postseason athletic game or exhibition, such as a `bowl' game, unless, as provided in section 4233(a)(1)(C), the proceeds therefrom inure exclusively to the benefit of an elementary or secondary school or unless, in the case of a game between teams composed of students from elementary or secondary schools, or colleges, the entire gross proceeds from such game inure to the benefit of a hospital for crippled children.