Rev. Rul. 56-115

The documentary stamp tax on a foreign insurance policy is computed on the basis of the total premium charged, and is due when the insurance becomes effective. See section 4371 of the Internal Revenue Code of 1954 and part (1) of S.T. 743, C.B. XIII-1, 442 (1934), part (2) of which was revoked by M.T. 12, C.B. 1943, 1169. When a premium is unconditionally paid at the time the policy is issued, no refund of tax may be made even though a partial refund of the premium is allowed by the foreign underwriters. If, however, under the specific terms of the policy, the assured is not liable for any premiums covering conditional risks, unless and until the risks have been incurred, and the policy expires or is cancelled without such risks being incurred, any stamps affixed with respect to the conditional premiums would be redeemable. In any case in which the assured is entitled to a refund of all or a portion of the amount paid for documentary stamps, a claim for redemption, supported with copies of all pertinent documents or extracts therefrom, should be filed with the District Director of Internal Revenue. See Rev. Rul. 55-396, C.B. 1955-1, 522.