of such broker. The name of the person so nominated shall be furnished to the collector of internal revenue for the district in which the principal office of the broker is located. Substitutions of nominees may be effected by likewise registering the name of the successor nominee. Record of such registration shall be kept by the collector with other registrations as provided by § 111.127. The collector shall in each case furnish the broker a statement showing that the nominee has been duly registered. No special form is prescribed for use in registration.*t [As amended by T.D. 4701, Oct. 16, 1936, 1 F.R. 1643]

111.127 Record of registration kept by collector. (a) Every collector shall file and preserve each statement for registration filed with him in accordance with the regulations in this part, and shall issue to each person, partnership, exchange, clearing house, or corporation a certificate of registration, showing the date of issue, the name of the person or exchange, clearing house, or corporation conducting the business, and the nature of the business for which the certificate is granted, which certificate of registration shall be signed by the collector and shall be posted in some prominent place in the office of said person, partnership, exchange, clearing house, or corporation.

(b) If such business is conducted at more than one place, a certificate shall be posted in each such place of business.*†

DISTRIBUTION AND SALE OF STAMPS

SECTIONS 805 (a) AND 807 OF THE REVENUE ACT OF 1926; AND SECTION 808 OF THE REVENUE ACT OF 1926, AS ADDED BY SECTION 443 OF THE REVENUE ACT OF 1928, AND AS AMENDED BY THE ACT OF MARCH 1, 1933 (47 STAT. 1413)

SEC. 805. (a) The Commissioner shall cause to be prepared and distributed for the payment of the taxes prescribed in this title suitable stamps denoting the tax on the document, articles, or thing to which the same may be affixed, and shall prescribe such method for the affixing of said stamps in substitution for or in addition to the method provided in this title, as he may deem expedient. SEC. 807. (a) Each collector shall furnish, without prepayment, to any designated depositary of the United States, located in the district of such collector, a suitable quantity of adhesive stamps to be kept on sale by such designated depositary.

(b) Each collector shall furnish, without prepayment, to any person who is (1) located in the district of such collector, (2) duly appointed and acting as agent of any State for the sale of stock transfer stamps of such State, and (3) designated by the Commissioner for the purpose, a suitable quantity of such adhesive stamps as are required by subdivisions 2, 3, and 4 of Schedule A of this title, to be kept on sale by such person.

(c) In such cases the collector may require a bond, with sufficient sureties, in a sum to be fixed by the Commissioner, conditioned for the faithful return, whenever so required, of all quantities or amounts undisposed of, and for the payment monthly of all quantities or amounts sold or not remaining on hand. The Secretary may from time to time make such regulations as he may find necessary to insure the safe-keeping or prevent the illegal use of all such adhesive stamps.

SEC. 808. The Commissioner shall furnish to the Postmaster General without prepayment a suitable quantity of adhesive stamps to be distributed to and kept on sale by the various postmasters in the United States in all post offices of the first and second classes and such post offices of the third and fourth classes as are located in county seats. The Postmaster General may require each such postmaster to give additional or increased bond as postmaster for the

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*For statutory and source citations, see note to § 111.1.

value of the stamps so furnished, and each such postmaster shall deposit the receipts from the sale of such stamps to the credit of and render accounts to the Postmaster General at such times and in such form as he may by regulations prescribe. The Postmaster General shall at least once monthly transfer all collections from this source to the Treasury as internal-revenue collections. 111.128 Stamps. (a) No person other than a collector of internal revenue or duly authorized deputy collector of internal revenue, or designated United States depositary shall sell or expose for sale, give away, traffic in, trade, barter, lend, borrow, or exchange any stock transfer or future delivery stamps issued pursuant to the regulations in this part, except any person or corporation which has been duly appointed and constituted and is acting agent of any State for the sale of stock transfer stamps of such State may, upon approval by the Commissioner and upon giving a bond satisfactory to the collector, sell United States stamps issued pursuant to the regulations in this part. A bond shall not be required when such person or corporation uniformly purchases such stamps from the collector for cash.

(b) No person shall buy, receive, or have in his possession, or under his control, any stock transfer or future delivery stamps issued pursuant to the regulations in this part, unless such stamps have been purchased directly from the collector of internal revenue, or duly authorized deputy collector of internal revenue, United States designated depositary, or a designated agent for the sale of State stock transfer stamps, authorized by the Commissioner, in the district in which the stamps are to be used.

(c) All requisitions for stamps to be used under the regulations in this part shall be made in writing, on a form prescribed by the Commissioner, to the collector of internal revenue or duly authorized deputy collector of internal revenue, or designated United States depositary, or State agent authorized by the Commissioner, in the internal-revenue district in which the stamps are to be used, giving the date thereof, the number and denomination of stamps applied for, and the name and address of the purchaser, and shall be signed in ink by the person receiving such stamps.

(d) If the requisition for such stamps shall be made to any United States designated depositary or duly authorized State agent for sale of State stock transfer stamps, such United States designated depositary or duly authorized State agent shall keep a record thereof, and on or before the 15th day of each month shall file with the collector of internal revenue of the district a statement, for the preceding month, setting forth the number, denomination, and amount of all stamps on hand at the beginning of the month, the number, denomination, and amount sold during the month, and the number, denomination, and amount on hand at the end of the month, accompanied with the requisition filed by each purchaser, and on or before the 15th day of each month shall pay over to such collector of internal revenue all money received from sales of such stamps for the preceding month, taking his receipt there for. However, any United States designated depositary or duly authorized State agent for the sale of State stock transfer stamps who uniformly purchases

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such stamps for cash shall not be required to keep the record or make the return above prescribed, but the stamps shall be resold only upon requisition as prescribed in paragraph (e), and all requisitions shall be filed with the collector on or before the 15th day of each month for the preceding month.

(e) The collector of internal revenue shall keep the requisition for stamps sold by him and those sold by such designated United States depositary or authorized State agent separate and apart from all other requisitions for stamps, and shall preserve them in his office for a period of at least 4 years.*†

DENOMINATIONS OF DOCUMENTARY STAMPS

111.129 Documentary stamps issued. Under authority conferred upon the Commissioner of Internal Revenue in section 805 (a) of the Act, the following adhesive stamps have been prepared:

Documentary stamps, Schedule A: 1 cent, 2 cents, 3 cents, 4 cents, 5 cents, 8 cents, 10 cents, 25 cents, 40 cents, 50 cents, 80 cents, $1, $2, $3, $4, $5, $10, $30, $60, $100, $500, $1,000.**

PURCHASE OF STAMPS

111.130 Stamps; where purchased. The stamps may be purchased from collectors, stamp deputy collectors of internal revenue, and postmasters in all post offices of the first and second classes and such post offices of the third and fourth classes as are located in county seats.** [As amended by T.D. 4806, June 1, 1938, 3 F.R. 1331 (DI)]

111.131 Designated depositaries to be furnished stamps; bond required. In addition, provision is made in the Act for the delivery of stamps by collectors without prepayment to any designated depositary of the United States or duly authorized State agent for sale of State stock transfer stamps, who may be required to give bond for the value of stamps so deposited. It is not mandatory upon the persons named to secure and keep the stamps on sale.**

111.132 Stamps on articles manufactured in foreign countries. Stamps to be affixed to articles manufactured in a foreign country and imported into the United States may be purchased and forwarded to the place of manufacture and there affixed to the articles before the same are packed for importation.**

AFFIXING AND CANCELATION OF STAMPS

SECTION 804 OF THE REVENUE ACT OF 1926

Whenever an adhesive stamp is used for denoting any tax imposed by this title, except as hereinafter provided, the person using or affixing the same shall write or stamp or cause to be written or stamped thereupon the initials of his or its name and the date upon which the same is attached or used, so that the same may not again be used: Provided, That the Commissioner may prescribe such other method for the cancellation of such stamps as he may deem expedient. 111.133 Affixing and cancelation of stamps. (a) In the case of the issue of shares of stock, whether on organization or reorganiza

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*For statutory and source citations, see note to § 111.1.

tion, the stamps representing the tax shall be affixed to the stock books or corresponding records and not to the certificates issued.

(b) In the case of a sale before certificates are issued, where the evidence of transfer is shown only by the books of the corporation, the stamps shall be placed on such books.

(c) In case the change of ownership is effected by transfer or delivery of the certificate or other instrument-i. e., where the name of the transferee is inserted in the indorsement or power of attorney on the back of the certificate or other instrument-the stamp shall be affixed to such certificate or other instrument, and canceled by the person making the sale or transfer.

(d) In case of agreement to sell, or where the transfer is by delivery of the certificate or other instrument assigned in blank, the stamp shall be affixed to the bill, memorandum, or agreement to sell, and canceled by the seller or transferor.

(e) In no event shall any transfer agent or corporation accept or transfer any shares or certificates of stock or any bonds unless stamps for all transfer tax required thereon have been properly affixed either to the certificates of stock or other instruments, or memoranda of sale, as the case may be, and duly canceled.

(f) The person using or affixing the stamp shall write or stamp thereon, in ink, his initials and the day, month, and year on which the same shall be affixed, or shall, by cutting or canceling with a machine or punch, affix his initials and the date as aforesaid, and so deface such stamp as to render it unfit for reuse. In addition to the foregoing, stamps of the value of 50 cents or more shall have three parallel incisions made with some sharp instrument lengthwise through the stamp after the same has been attached to the certificate, instrument, or bill, or memorandum, or other evidence of sale or transfer; but this shall not be required where stamps are canceled by perforation. The cancelation by either method shall not so deface the stamp as to prevent its denomination and genuineness from being readily determined.*†

111.134 When two or more stamps may be used. Where a stamp of the proper denomination to pay the tax due on an article or document can not be procured, two or more stamps may be used. In such case as few stamps as possible should be attached and each stamp used should be canceled in the manner provided by regulation.**

111.135 Stamp affixed and canceled can not lawfully be removed and affixed to another instrument. A stamp affixed to an instrument and canceled can not lawfully be removed therefrom and affixed to another instrument requiring a stamp.**

111.136 Parties to taxable instrument liable. Any party to a taxable transaction is responsible to the Government for affixing and canceling stamps in the required amount. The law does not prohibit parties in interest from entering into an agreement as to which of them shall actually pay same.**

111.137 Documentary stamps only to be used. Ordinary documentary stamps only must be used upon papers, documents, and instruments subject to tax, including the issue of stock; except that

**For statutory and source citations, see note to § 111.1.

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stock-transfer and future-delivery stamps are required in transactions in stock and in products or merchandise, on exchanges. As to the required use of stock-transfer and future-delivery stamps, see §§ 111.40, 111.52.*†

111.138 Documentary stamps issued under Acts of October 22, 1914, October 3, 1917, February 24, 1919, June 2, 1924, and February 26, 1926. Documentary revenue stamps issued under Acts of October 22, 1914 (38 Stat. 745), October 3, 1917 (40 Stat. 300), February 24, 1919 (40 Stat. 1057), June 2, 1924 (43` Stat. 253), and February 26, 1926, may be used to pay stamp taxes required by the Revenue Act of 1926 (44 Stat. 9), as amended.*†

111.139 Ordinary postage stamps not to be used for internalrevenue taxes. Ordinary postage stamps can not be used for the payment of any internal-revenue taxes.**

111.140 Stamp tax to be reported for assessment in certain cases. In cases where instruments are no longer in existence or can not possibly be stamped or where a taxpayer, after being advised of his liability, refuses to affix stamps, the tax will be reported for assessment. When assessment is paid a receipt on Form 1 will be issued. In those instances where stamps are purchased and affixed to the instrument receipt on Form 1 will not be issued.*†

REDEMPTION OF OR ALLOWANCE FOR STAMPS

111.141 Stamps rendered useless, affixed in error, or for which the owner has no use. Where documentary stamps are rendered useless by gumming or sticking together in transit or otherwise without fault of the purchaser, they may be exchanged by a collector for other stamps of exactly the same quantity and denomination. Amounts paid for stamps used in excess, or on instruments not actually effective and for which a substitute is prepared and stamped, or on instruments not subject to tax or for which the owner has no use, may be refunded, upon claim properly presented to the collector.*t

111.142 Claims. All claims for the redemption of or allowance for stamps must be presented within four years after the purchase of said stamps from the Government. In filing a claim for the redemption of or allowance for stamps, the stamps involved should be submitted therewith, or if it is impracticable to remove the stamps from the instruments to which they are attached, they should be presented to a deputy collector or other internal-revenue representative, who shall write on the face of the stamps the words "claim for refund filed," and a statement from such internal-revenue representative shall be furnished showing that such indorsement has been made. In any case where the actual date of purchase of the stamps from the Government can not be given, it must be definitely shown in the claim whether they were so purchased within 4 years prior to the date of filing of the claim. The provisions of sections 3220 to 3228, Revised Statutes (26 U.S.C. 1275, 1433, 1543, 1670, 1672, 1676), as amended, do not apply to the redemption of or allowance for inter

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**For statutory and source citations, see note to § 111.1.