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Revenue Ruling

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 Rev. Rul. 64-87

1964-1 C.B. 388

Caution: Obsoleted by Rev. Rul. 69-227

Full Text

Rev. Rul. 64-87

A company manufacturers and sells a machine which is designed to be used at a central processing point to electronically `read' coded data cards, such as sales tickets, and to punch the coded information into the cards in `language' which can be interpreted by conventional punched card accounting equipment. With the coded information translated into punch card language and reproduced, the source card may be sent to the customer with a coded invoice. When the invoice is returned with the payment, it can be processed automatically by the above-described machine.

Held , this machine is a combination of a `card punch machine' and a `punch card machine' within the meaning of section 4191 of the Internal Revenue Code of 1954. Accordingly, it is subject to the manufacturers excise tax imposed by that section when sold by the manufacturer.