payer whose check has been returned uncollected by the depositary bank should fail at once to make the check good the collector should proceed to collect the tax as though no check had been given. A taxpayer who tenders a certified check in payment for taxes is also not released from his obligation until the check has been paid. (See section 3656, I. R. C.)

§ 302.22 When fractional part of cent may be disregarded. In the payment of taxes, a fractional part of a cent may be disregarded unless it amounts to onehalf cent or more, in which case it shall be increased to 1 cent.

§ 302.23 Misrepresentation of tax. If a manufacturer or other vendor misrepresents the tax, he is guilty of a misdemeanor and is liable to a fine of $1,000 and to imprisonment for a year. This provision is designed, among other things, to prevent a vendor adding more than the amount of the tax to the price of an article and representing that the increase is due to the tax.

AUTHORITY: §§ 305.1 to 305.22 issued under 53 Stat. 467; 26 U. S. C. 3791. Interpret or apply 53 Stat. 199, as amended; 26 U. S. C. 1807.

SOURCE: § 305.1 to 305.22 contained in Regulations 66, Aug. 9, 1933, except as noted following sections affected.

SUBPART A-GENERAL

The

§ 305.1 Meaning of terms used. word "person" may extend to and include a partnership, association, company, or corporation, as well as a natural person. The word "company" or "association" when used in reference to a corporation embraces the word "successors or assigns of such company or association," the same as if such words or words of similar import were expressed. Words in the singular number or masculine gender may extend to and be applied to several persons or things or to females, and similarly the plural number may include the singular. The requirement of an "oath" will be complied with by affirmation in judicial form.

[Redesignation noted at 14 F. R. 5199]

§ 305.2 Authority to enter premises. (a) The right to enter in the daytime any building or place where any article or objects subject to tax are made, produced, or kept, so far as it may be necessary for the purpose of examining said articles or objects, is given the collector, deputy collector, or inspector within his district, and any internal-revenue agent whose employment is authorized by section 3601, I. R. C. See also section 3614, I. R. C. When such premises are open at night such officers may enter them while open in the performance of their official duties. If the owner of such building or place, or person in charge, refuses to admit such officer or to permit him to examine such articles or objects, applicable penalties will be invoked. above right to enter certain premises does not extend to private homes where it is believed a fraud upon the revenue is being committed, which may be entered only under authority of a search warrant.

The

(b) A search warrant can not be issued but upon probable cause, supported by affidavit, naming or describing the person and particularly describing the property and the place to be searched (18 U. S. C. 3105, 3109). (For authority for issuance of search warrants in internal-revenue cases, see section 3602, I. R. C.)

[Redesignation noted at 14 F. R. 5199]

SUBPART B-MANUFACTURERS OF PLAYING

CARDS

§ 305.5 Manufacturer defined. (a) A manufacturer of playing cards is (1) one who manufactures playing cards for sale or consumption; (2) one who packs or repacks playing cards for sale; (3) one who offers or exposes for sale packs of playing cards, either domestic or imported, without the use of the proper stamps denoting payment of the tax thereon.

(b) The person who cuts playing cards from large lithographed sheets and finishes them is regarded as the manufacturer thereof and not the lithographer.

(c) A person who cleans, gilds, reassembles, or repacks playing cards previously tax paid is deemed a manufacturer of playing cards and subject to all the liabilities thereof.

(d) A club which resells packs of cards on which the stamps have been broken incurs liability as a manufacturer of playing cards and must restamp each package so sold.

§ 305.6 Manufacturers to register. Every manufacturer of playing cards shall register with the collector for the district his name or style, place of residence, trade or business, and the place where such business is carried on, and failure to register as provided in this section and retired shall subject such person to a penalty of $50 (sec. 1831 (b), (c), I. R. C.). To register as required Form 277 should be modified and used. The collector receiving a return for registry from one intending to engage in the manufacture of playing cards will issue to every such person or persons so registered a certificate of registry on Form 382, which should be conspicuously posted in his place of business.

§ 305.7 Manufacturer's monthly return. (a) Every manufacturer or importer of playing cards must furnish to the collector of his district not later than the 10th day of each month an accurate return, under oath, on Form 749, in duplicate, of the following transactions in packs of playing cards during the preceding month: The number on hand at the beginning of the month; the number manufactured during the month; the number removed tax-paid and for export during the month; the number on hand at the end of the month; and the values of all stamps purchased and used during

the month. Blanks, Form 749, are furnished by collectors of internal revenue. (b) A return on Form 749 must be submitted each month to date of closing. Any stock of playing cards on hand when the business is discontinued must be accounted for on monthly returns. Both copies of the return for the last month must be marked "Final returns."

§ 305.8 Tax on playing cards. (a) On and after October 1, 1941, the rate of tax on playing cards is 13 cents per pack containing not more than 54 cards. Each additional 54 cards or fraction thereof in a pack constitutes a new pack on which tax must be paid. For example, if a pack contains 120 cards it must be considered as constituting three packs, two packs of 54 cards and one pack of 12 cards, and each such pack is subject to tax at the rate in effect when liability is incurred.

(b) The tax on playing cards accrues upon removal from the factory or place where made, or upon sale prior to such removal, and is to be paid by the manufacturer thereof by the affixing of stamps before removal. (See § 305.5, defining a manufacturer of playing cards, and § 305.11, relative to affixing stamps.)

(c) The tax applies to ordinary playing cards such as are used in playing games of skill or chance such as "poker,' "euchre," "pinochle," and the like, and to cards that may be used in lieu of ordinary playing cards. Cards for the game of "authors," so called, and the like, differing wholly from ordinary cards, are not subject to tax.

(d) Miniature playing cards, playing cards with advertising matter printed thereon, and so-called "fortune-telling," "magic," or "trick" decks composed wholly or in part of playing cards or cards that may be used in lieu of playing cards are all subject to the tax.

(e) Where packages of playing cards are sent out from the factory duly stamped and are thereafter opened and stamp broken, the cards cannot be returned to the packages and sold under a broken stamp; a new stamp must be affixed to each package and duly canceled.

(f) If cards are reassembled from packs on which tax has been paid, each deck must show the requisite stamp. [Regs. 66, Aug. 9, 1933, as amended by T. D. 5080, 6 F. R. 5109]

§ 305.9 Stamps for payment of tax. Stamps have been prepared pursuant to law for payment of the tax on playing cards, and have been furnished to collectors for sale only to such manufacturers as have registered as required by law and to importers of playing cards.

305.10 Use of order forms for stamps. Manufacturers must use Form 218 in ordering playing card stamps. This form is printed by the Government only and furnished to collectors for distribution. Each such order form must be accompanied by the proper remittance for the full amount of the order. Unless otherwise directed, stamps will be sent by ordinary mail at the risk of the purchaser. If ordered to be sent by registered mail, the order must be accompanied by 15 cents additional to pay registry fee. Stamps will also be forwarded by express at the expense of the taxpayer.

§ 305.11 Affixing stamps. (a) Each pack of playing cards, except as provided in this section, shall, prior to sale, or before removal from the place where manufactured, packed, reassembled, or repacked, have securely affixed thereto proper internal-revenue stamp or stamps of such denomination as will cover fully the tax thereon. Such stamp or stamps shall be affixed in such manner as to seal the pack and to necessitate the stamp or stamps being torn in two pieces when the pack is opened.

(b) Where playing cards are packed in leather, plush, celluloid, ornamental, or metal cases, the stamps denoting payment of the tax thereon may be affixed to inside wrappers instead of to the cases proper, provided one of the following methods of packing and stamping is used:

(1) Paper bands not less than onehalf inch wide must be extended around the entire pack of cards, both the long and short way, and securely fastened together with paste or mucilage at the intersection on the back of the pack so that the pack cannot be separated without breaking the bands. The internal-revenue stamp must be affixed to the pack in such manner that it will adhere partly to one of the bands and partly to the back of the top card so that removal of the bands will necessitate tearing the stamp in two. If desired, an extra blank card may be placed on top of the pack for the purpose of attaching a part of the stamp thereto.

(2) The package of cards must be completely wrapped with paper, securely sealed with paste or mucilage, and the internal-revenue stamp affixed across the place where the wrapper is sealed in such manner as to necessitate tearing the stamp in two when the cards are removed from the wrapper.

§ 305.12 Cancellation of stamps. (a) Each stamp affixed to a package of playing cards must be canceled by writing or printing in ink across the face of the stamp the initials of the manufacturer.

(b) Every person who fraudulently makes use of an adhesive stamp to denote payment of the tax on playing cards without canceling the stamp as above provided shall forfeit the sum of $50.

§ 305.13 Penalty for removing playing cards for sale or consumption without payment of tax. Whenever any person makes, prepares, and sells or removes for consumption or sale, playing cards, whether of domestic manufacture or imported, upon which a tax is imposed by law, without affixing thereto an adhesive stamp denoting the tax before mentioned, he shall incur a penalty of $50 for every omission to affix such stamps. Whoever manufactures or imports and sells, or offers for sale, or causes to be manufactured or imported and sold, or offered for sale, any playing cards, without the full amount of tax being duly paid, is guilty of a misdemeanor and upon conviction thereof shall pay a fine of not more than $100 for each offense (sec. 1820 (b), I. R. C.).

§ 305.14 Penalty for removing or reusing playing card stamps. Every manufacturer or maker of playing cards who, after the same are made, and the particulars hereinbefore required as to stamps have been complied with, takes off, removes, or detaches, or causes, or permits, or suffers to be taken off, or removed, or detached, any stamp, or who uses any stamp, or any wrapper or cover to which any stamp is affixed, to cover any other article or commodity than that originally contained in such wrapper or cover with such stamp when first used, with the intent to evade the stamp duties, shall, for every such article, respectively, in respect of which any such offense is committed, be subject to a penalty of $50, to be recovered together with the costs thereupon accruing; and every such article or commodity as aforesaid shall also be forfeited.

305.15 Penalty and forfeiture for removing, exposing, or concealing playing cards without affixing stamps. Every maker or manufacturer of playing cards who, to evade the tax or duty chargeable thereon, or any part thereof, sells, exposes for sale, sends out, removes, or delivers any playing cards before the duty thereon has been fully paid, by affixing thereon the proper stamp, as provided by law, or who, to evade as aforesaid, hides or conceals, or causes to be hidden or concealed, or removes or conveys away, or deposits, or causes to be removed or conveyed away from or deposited in any place, any such article or commodity, shall be subject to a penalty of $50, together with the forfeiture of any such article or commodity.

§ 305.16 Penalty and forfeiture for removing, altering, and fraudulently using playing card stamps. Whoever:

(a) Fraudulently cuts, tears, or removes from any vellum, parchment, paper, instrument, writing, package, or article, upon which any tax is imposed by chapter 11, I. R. C., any adhesive stamp or the impression of any stamp, die, plate, or other article, provided, made, or used in pursuance of that title;

(b) Fraudulently uses, joins, fixes, or places to, with, or upon any vellum, parchment, paper, instrument, writing, package, or article, upon which any tax is imposed by that title, (1) any adhesive stamp, or the impression of any stamp, die, plate, or other article, which has been cut, torn, or removed from any other vellum, parchment, paper, instrument, writing, package, or article, upon which any tax is imposed by that title; or (2) any adhesive stamp or the impression of any stamp, die, plate, or other article of insufficient value; or (3) any forged or counterfeited stamp, or the impression of any forged or counterfeited stamp, die, plate, or other article;

(c) Willfully removes, or alters the cancellation, or defacing marks of, or otherwise prepares, any adhesive stamp, with intent to use, or cause the same to be used, after it has been already used, or knowingly or willfully buys, sells, offers for sale, or gives away, any such washed or restored stamp to any person for use, or knowingly uses the same;

(d) Knowingly and without lawful excuse (the burden of proof of such excuse

being on the accused) has in possession any washed, restored, or altered stamp, which has been removed from any vellum, parchment, paper, instrument, writing, package, or article;

is guilty of a misdemeanor, and upon conviction shall be punished by a fine of not more than $1,000 or by imprisonment for not more than 5 years, or both, and any such reused, canceled, or counterfeit stamp and the vellum, parchment, document, paper, package, or article upon which it is placed or impressed shall be forfeited to the United States (sec. 1823, I. R. C.).

§ 305.17 Commissioner's duty to assess omitted taxes. The law makes it the duty of the Commissioner, upon satisfactory proof, to estimate the amount of tax omitted to be paid whenever any manufacturer of playing cards sells or removes for sale any playing cards liable to payment of tax by stamps, without the use of the proper stamps, and to make an assessment therefor and to certify the same to the collector of the district for collection. Such assessment must be made within four years from the date when the tax became due, except that in the case of a willful attempt in any manner to defeat or evade tax, assessment may be made at any time. Assessments will be predicated upon prima facie evidence of the sale or removal of playing cards by manufacturers without the use of the proper stamps obtained and reported by deputy collectors or other internal-revenue officers, or from other facts and circumstances reported by such officers. The tax so assessed shall be in addition to the penalties imposed by law for such sale or removal.

§ 305.18 Abandoned or forfeited playing cards. All playing cards which have been abandoned, forfeited, or seized under warrant of distraint, and which are sold by order of court or of any Government officer for the benefit of the United States, or by a sheriff, constable, or other municipal officer under any writ, execution, or process or order of any court, shall, before delivery by such officer, be properly packed and have the requisite stamps affixed and canceled. With reference to the procurement and cancellation of stamps in cases of sales referred to in this section, instructions will be given as to the procedure according to the facts in the individual case.

SUBPART C-THE IMPORTATION, REIMPORTATION, EXPORTATION OF PLAYING CARDS, AND TAX-FREE WITHDRAWAL THEREOF FOR USE OF THE UNITED STATES

§ 305.19 Imported playing cards—(a) Liability to tax. On and after October 1, 1941, playing cards imported from foreign countries must be tax-paid at the rate of 13 cents per pack of not more than 54 cards. Such tax is in addition to any import duty and must be paid by affixing the required stamps prior to release of the cards from customs custody.

(b) Purchase of stamps. Stamps for the tax payment of imported playing cards will be sold to the owner or consignee of such merchandise by the collector of internal revenue of the district in which is located the office of the collector of customs where the customs entry is filed, and only upon requisition therefor (Form 923) duly executed by an authorized customs officer. (See § 305.10 for details other than the form to be used in making the order.)

(c) Stamping and canceling stamps. Internal-revenue stamps shall be affixed by the owner or consignee of imported playing cards while they are in the custody of the proper customs officer, and such cards shall not pass out of the custody of such officer until the requisite stamps are affixed and canceled. The method of affixing stamps to domestic playing cards prescribed in § 305.11 is hereby made applicable to imported playing cards. Each stamp so affixed must be canceled by writing or printing in ink across the face of the stamp the initials of the owner or consignee and the date on which the stamp was affixed. [Regs. 66, Aug. 9, 1933, as amended by T. D. 5080, 6 F. R. 5109]

§ 305.20 Reimported playing cards. When playing cards produced in the United States which have been duly exported without payment of tax are reimported, they are liable to customs duty, equal to the tax imposed by the internalrevenue laws upon such product. All packs of reimported playing cards must have customs inspection stamps affixed to denote payment of duty thereon. Such packages are not required to have internal-revenue stamps affixed.

§ 305.21 Exportation of playing cards. (a) The regulations relating to exportation of playing cards without the payment of tax under the above section of law are prescribed in Part 451 of this

chapter. Copies thereof may be obtained from collectors of internal revenue or from the office of the Commissioner of Internal Revenue. Packs of cards sent abroad even as samples must comply with all the provisions of law and regulations relating to the exportation of playing cards. No provision has been made by law for allowance of drawback on playing cards exported tax-paid.

(b) Playing cards withdrawn free of tax for export must be consigned by the manufacturer in care of the collector of customs at the port of export, and under no circumstances shall such cards be consigned by the manufacturer to another manufacturer or dealer or exporter notwithstanding such other manufacturer or dealer or exporter intends to export the cards so removed. Exportation of playing cards in every instance must be made direct from the factory without any stoppage in transit.

§ 305.22 Withdrawal of playing cards for use of United States. The regulations governing the withdrawal of playing cards free of tax for use of the United States are prescribed in Part 450 of this chapter. Copies thereof may be obtained from collectors of internal revenue or from the office of the Commissioner of Internal Revenue.