INDEX-Continued TOBACCO TAX-Continued Date of tobacco products withdrawal from market. Cigars taxpaid by return, mark required on package.. Limitation period, filing claims, tobacco products, cigarette Losses, disaster, tobacco products, cigarette papers and 26 CFR 296.1 through 296.16; claims for refund or 26 CFR 270.64, 270.190 through 270.191a, 270.230, c-6341... 2,22 Refunds, conditions to allowance, rightful claimant.... Cigars taxpaid, mark required on packages._ Sea stores, tobacco products on vessels, aircraft, United Taxes: Collection by Customs, cigars imported in passengers' c-6341... 2, 22 Refund or credit, rightful claimant.... Tobacco products on vessels, aircraft, United States- Tobacco materials, refund or credit claims filed after April Tobacco products: Cigars, imported in passengers' baggage or by mail, tax- Cigars, taxpaid by return, mark required on packages.. Refund or credit claims filed after April 30, 1958_. Sea stores on vessels, aircraft, United States-Alaskan Withdrawn from market, date on refund claims------- Warehouses: Customs bonded cigar manufacturing: Mark required on cigar packages. Tobacco products withdrawn from market, date b-2------ on refund claim. Revenue Rulings. b Revenue Procedures. c Treasury Decisions. d Court Decisions. e Public Laws. f Executive Orders. g Delegation Orders. h Treasury Department Orders. i Tax Conventions. Statement of Procedural Rules. The Internal Revenue Bulletin is issued weekly and contains rulings, pro- The contents of the weekly Bulletin are consolidated at least semiannually 1 House, Senate, and conference reports on revenue bills enacted as the act of October 3, 1913, the act of October 22, 1914, and the Revenue Acts of 1916 to 1938, inclusive and on amendment to such acts. * Printed in one volume. All inquiries in regard to these publications and subscriptions should be sent to the Superintendent of Documents, Government Printing Office, Washington 25, D.O. U.S. GOVERNMENT PRINTING OFFICE: 1959 In view of the issuance of final regulations under section 481 of the Code, taxpayers are reminded that upon written requests from them consideration may now be given certain applications for permission to change accounting methods for Federal income tax purposes. Amounts paid by the Veterans Administration to graduate students while serving a training period at Veterans Administration hospitals as staff assistants, as a condition to receiving a doctoral degree from a university, constitute taxable compensation. Announcement Rev. Rul. 59-118, page 10. The Revenue Service discusses the tax consequences of Rev. Rul. 59-119, page 13. The benefits of section 337 of the Code are not appli- Rev. Rul. 59-120, page 14. The consideration received for the granting of an ease. Rev. Rul. 59-121, page 15. For purposes of the "80 percent rule" provided in sec. Rev. Rul. 59-122, ESTATE TAX: The estate tax marital deduction may not be waived in Rev. Rul. 59-123, (Continued on page 3) Finding Lists begin on page 29. TREASURY DEPARTMENT 500393°-59-1 page 18. • INTERNAL REVENUE SERVICE INTRODUCTION The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for the announcement of official rulings and procedures of the Internal Revenue Service, and for the publication of Treasury Decisions, Executive Orders, tax conventions, legislation, and court decisions pertaining to internal revenue matters. Other items considered to be of general interest are also published in the Bulletin, such as announcements relating to proposed regulations published with notice of proposed rulemaking, announcements relating to decisions of the Tax Court of the United States, announcements of the disbarment and suspension of attorneys and agents from practice before the Treasury Department, Delegation Orders, etc. It is the policy of the Service to publish in the Bulletin all substantive and procedural rulings of importance or of general interest, the publication of which is considered necessary to promote a uniform application of the laws administered by the Service. It is also the policy to publish all rulings and statements of procedures which supersede, revoke, modify, or amend any published ruling or procedure. Except where otherwise indicated, published rulings and procedures apply retroactively. Rulings and statements of procedures relating solely to matters of internal management are not published. However, statements of internal practices and procedures affecting rights or duties of taxpayers, or industry regulation, which appear in internal management documents, are published. Revenue Rulings and Revenue Procedures are based upon rulings and internal management documents prepared in the various divisions of the National Office, including the Office of the Chief Counsel for the Internal Revenue Service. In the preparation of these, caution is exercised to conceal the identity of the taxpayer, as well as any confidential personal and business information. All Revenue Rulings published in the Bulletin have received the consideration and concurrence of the Chief Counsel. Revenue Rulings and Revenue Procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations (including Treasury Decisions), but are published to provide precedents to be used in the disposition of other cases, and may be cited and relied upon for that purpose. Since each published ruling represents the conclusion of the Service as to the application of the law to the entire state of facts involved, Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. In applying rulings and procedures published in the Bulletin, (Continued on page 4) HIGHLIGHTS OF THIS ISSUE-(Continued from page 1) EXCISE TAXES: The retailers tax applies to taxable articles sold by so- Rev. Rul. 59–124, called “gift clubs," where such articles are shipped by foreign suppliers direct to customers in the United States. Where a truck body manufacturer purchases a chassis on a tax-paid basis, mounts a body thereon, and sells the complete vehicle, the determination of the taxable sale price of the body, for purposes of the manufacturers tax, depends upon whether the body manufacturer has separate established sale prices for the chassis and the body. The_manufacturers taxes on gasoline and lubricating oil do not apply to gasoline and lubricating oil which are given away by a producer for use in stock car races. The taxes on initiation fees and dues or membership fees may be directly assessed at any time against a member of a social, athletic, or sporting club who fails or refuses to pay such tax, where no attempt is made by the club to put the Government on notice of that member's liability for such tax. ALCOHOL TAX: page 18. Rev. Rul. 59-125, page 20. Rev. Rul. 59–126, page 21. Rev. Rul. 59–127, page 24. page 27. When distilled spirits are mingled, the warehouseman Rev. Rul. 59-128, may, under certain conditions, use any of the names represented in the mingled spirits as the name of the distiller to be marked on packages filled with such mingled spirits. An industry conference is scheduled for April 21 and Announcement 22, 1959, in Washington, D.C., to discuss the distilled spirits plant regulations. ADMINISTRATIVE: 59-43, page 28. The Senate Committee on Government Operations has E. O. 10806, Announcement of action on decisions of the Tax Court of page 23. Page 6. |