The Revenue Act of 1918 imposes a tax on drafts and checks, payable otherwise than at sight or on demand, upon their acceptance or delivery, whichever is prior, within the territorial jurisdiction of the United States, and on promissory notes, except those listed below as exempt, and on each renewal of the same. The term “United States” includes the states, the District of Columbia, Hawaii and Alaska. The tax is at the rate of 2 cents on each $100 or fractional part thereof. On amounts not in ex

The following instruments payable otherwise than at sight or on demand are included among taxable drafts and checks: 1. Trade and bankers’ acceptances. 2. Post-dated checks expressly payable after their date. 3. Time drafts drawn against the proceeds of drafts exempt under (4) below. 4. Drafts stating no time for payment which are accepted for payment at a certain future date. 5. Time drafts drawn on a domestic bank for the purpose of securing money to purchase goods to be exported. 6. Time draf

The following promissory notes and renewals of the same are included among instruments taxable: 1. Notes given for security only. 2. Notes payable on demand or after date. 3. Promissory notes accompanying mortgages of joint-stock land banks. 4. Promissory notes secured by bonds of the War Finance Corporation. 5. Promissory notes executed and mailed in the United States to a payee in Canada. 6. Extensions or renewals of promissory notes brought about by extension of mortgages by which such notes

Any person using or affixing stamps must so deface the same as to render them unfit for further use by writing or stamping his initials and the date thereon with ink, or by cutting and canceling such stamp with a machine or punch, which will affix the initials and date. The cancellation should not so deface the stamp as to prevent its denomination and genuineness from being readily determined. In addition to the above, stamps of the value of 10 cents or more must have three parallel incisions ma

A stamp affixed to an instrument and cancelled cannot lawfully be removed and attached to another instrument. Refund will be made by the collector of internal revenue for amounts paid for stamps used in excess of requirements, or on instruments not actually effective and for which a substitute is prepared and stamped, or on instruments not subject to tax. [1] Based on Treasury Regulations No. 55....