Rev. Rul. 55-396

Advice has been requested whether a claim may be allowed for the refund of the amount paid for documentary stamps which had been erroneously attached to a deed that has been lost.

Section 3304(a) of the Internal Revenue Code of 1939 authorizes the Commissioner, subject to regulations prescribed by the Secretary, and upon receipt of satisfactory proof of the facts, to make allowances for or redeem stamps that may have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use, or which through mistake may have been improperly or unnecessarily used, or where the rates or duties represented thereby have been excessive in amount, paid in error, or in any manner wrongfully collected.

Section 3304(b) of the Code prescribes the method and conditions of allowance and provides, as an alternative to giving other stamps in lieu of the stamps redeemed, for the refunding of the amount or value of the stamps.

Section 113.159 of Regulations 71 provides that the stamps involved in a claim shall be submitted therewith, or if it is impracticable to remove the stamps from the instruments to which they are attached, the instruments should be presented to an internal revenue officer who shall write on the face of the stamps the words `claim for refund filed,' and attach to the claim a statement showing that such endorsement has been made.

Accordingly, it is held that in order to establish a claim for refund of the amount paid for documentary stamps that have been purchased and erroneously affixed to a document, it is necessary that such stamps be submitted with the claim or that they be endorsed by an internal revenue officer who shall write on the face of the stamps `claim for refund filed.' Where a document with the stamps affixed has been lost and it is impossible to endorse them in the approved manner, a refund of the amount paid for the stamps is not allowable