Internal Revenue Service
Revenue Ruling

TaxLinks.com   sm

 Rev. Rul. 62-84

1962-1 C.B. 195

Caution: Obsoleted by Rev. Rul. 69-227

IRS Headnote

A `writing portfolio' which is capable of being closed on all four sides and which is designed for carrying `social' stationery is considered to be a briefcase within the meaning of section 4031 of the Internal Revenue Code of 1954. Therefore, the retailer's sales of this briefcase are subject to the retailers excise tax on luggage, handbags, etc., imposed by that section.

Full Text

Rev. Rul. 62-84

Advice has been requested whether the retailers excise tax on the sale of luggage, handbags, etc., applies to the sale to the portfolio described below.

A retailer sells a so-called `writing portfolio' which is made of plastic. This portfolio may be closed on all four sides by means of a zipper. When it is closed, the outside measurements are approximately 9 inches by 11 3/4 inches. One side of the portfolio is equipped with a full length gusset pocket, with a divider for carrying correspondence and stationery. The pocket measures approximately 7 1/2 inches by 11 inches. It is designed for carrying `social' stationery and is not suitable for carrying what is ordinary considered to be `business' stationery. On the outside of this pocket there are three small compartments which contain an address book, a calendar, and a postage stamp holder. The other side of the portfolio is equipped with a blotter pad.

Section 4031 of the Internal Revenue Code of 1954 imposes a tax upon certain enumerated articles, by whatever name called, when sold at retail. Among the enumerated articles are `briefcases.'

Section 48.4031-1(b)(2) of the Manufacturers and Retailers Excise Tax Regulations provides that the term `briefcases' includes so-called `portfolios,' `envelopes,' etc., capable of being closed on all four sides which are designed and constructed for carrying or conveying unfolded legal-size or letter-size papers, documents, etc., but that it does not include `portfolios,' `envelopes,' etc., designed and constructed primarily for storage purposes.

The term `letter-size papers' as used in the regulations is not restricted in meaning to any standardized size of paper for either business or personal use. Hence, variable sized sheets of paper intended for use in writing letters, either social or business, are considered to be of letter size.

In view of the foregoing, it is held that the `writing portfolio' described above, which is capable of being closed on all four sides and is designed and constructed for carrying unfolded social stationery, is a briefcase within the meaning of section 4031 of the Code. Therefore, the retailers excise tax imposed by that section applies to the retail sale of that article.