Federal Revenue Stamps

What Are Federal Revenue Stamps?

Federal Revenue Stamps are adhesive labels used to indicate the payment of taxes on various transactions and documents. These stamps served as tangible proof that a federal tax had been paid, adding legitimacy and legality to the transaction. The use of Federal Revenue Stamps was discontinued in 1968.

Examples of Use

Property Sales: Stamps were affixed to the deed to prove that the necessary federal tax on the property sale had been paid.
Alcohol and Tobacco: Stamps were used on bottles of alcohol and packs of tobacco to show that taxes on these goods had been settled.
Legal Documents: Disputes over property, wills, or other legal matters often required documents to be stamped as proof of tax payment.

Frequently Asked Questions

Are Federal Revenue Stamps still in use today?

No, Federal Revenue Stamps have not been required since 1968.

Does the usage of Federal Revenue Stamps apply to state taxes?

No, Federal Revenue Stamps were used only to indicate the payment of federal taxes. State taxes have their own methods and requirements.

What replaced Federal Revenue Stamps?

Various digital and other paper methods have replaced the need for physical stamps to indicate tax payments.

Why were Federal Revenue Stamps discontinued?

With advancements in payment technology and record-keeping, the need for physical stamps became obsolete, leading to their discontinuation in 1968.

Can old Federal Revenue Stamps be collected or sold?

Yes, old Federal Revenue Stamps can be and are often collected or sold among stamp collectors and hobbyists.

Stamp Duty: A tax paid on certain documents and transactions much like the now-discontinued Federal Revenue Stamps.
Excise Tax: A tax on specific goods, services, and transactions that typically replaced the need for revenue stamps in certain contexts.
Property Tax: Taxes paid on property owned, sometimes requiring documentation much like the documents once requiring revenue stamps.

Online Resources

References

U.S. Government Publishing Office. “National Archives: Federal Revenue Stamps”. Accessed 2023.
IRS Historical Tax Documents. “Federal Revenue Stamps”. Internal Revenue Service. 1968.
Smithsonian Institution. “The History of Revenue Stamps in the US”. National Postal Museum.

Suggested Books for Further Studies

“The Fundamentals of Federal Revenue Tax Stamping” by Richard L. Polk
“Revenue Stamps: A Detailed History” by Thomas K. Dahlstrom
“Taxation Through Time: History of U.S. Treasury Collection” by Jennifer Harris

Real Estate Basics: Federal Revenue Stamps Fundamentals Quiz

### Were Federal Revenue Stamps used to indicate state tax payments? - [ ] Yes, they indicated payments for both federal and state taxes. - [x] No, they were only used for federal taxes. - [ ] Yes, but only in certain states. - [ ] No, they were only used for city taxes. > **Explanation:** Federal Revenue Stamps were only used to indicate the payment of federal taxes. State and city taxes followed their own methodologies. ### In what year were Federal Revenue Stamps discontinued? - [ ] 1958 - [x] 1968 - [ ] 1978 - [ ] 1988 > **Explanation:** Federal Revenue Stamps were discontinued in 1968 as advances in technology and tax collection methods rendered them obsolete. ### What was one of the primary uses of Federal Revenue Stamps? - [ ] Indicating paid sales tax at stores - [x] Showing that a federal tax had been paid on property sales - [ ] Indicating toll payments on highways - [ ] Marking paid fines for traffic violations > **Explanation:** One of the primary uses of Federal Revenue Stamps was to indicate that federal taxes on property sales had been paid. They were affixed to deeds and other legal documents. ### Are Federal Revenue Stamps considered collectables today? - [x] Yes, they are collected by hobbyists. - [ ] No, they have no value today. - [ ] Yes, but only if found on original documents. - [ ] No, their collection is illegal. > **Explanation:** Yes, Federal Revenue Stamps are considered collectables and are often traded among stamp collectors and hobbyists. ### Which agency was responsible for the issuance of Federal Revenue Stamps? - [x] The Internal Revenue Service (IRS) - [ ] The United States Postal Service (USPS) - [ ] The State Tax Agency - [ ] The Department of Commerce > **Explanation:** The Internal Revenue Service (IRS) was responsible for the issuance and regulation of Federal Revenue Stamps. ### What replaced Federal Revenue Stamps as proof of tax payment? - [ ] Physical embossed seals - [x] Digital records and modern paper documentation - [ ] Bank endorsements - [ ] Notarized certificates > **Explanation:** With advancements in technology, digital records and modern paper methods replaced the need for physically affixed Federal Revenue Stamps to indicate tax payments. ### Where might one view historical examples of Federal Revenue Stamps today? - [x] Smithsonian National Postal Museum - [ ] IRS offices - [ ] Federal courthouses - [ ] Local libraries > **Explanation:** The Smithsonian National Postal Museum has historical collections that include Federal Revenue Stamps, providing insight into their history and use. ### Did Federal Revenue Stamps come in various denominations or amounts? - [x] Yes, to correspond with different tax values. - [ ] No, there was only one standard stamp. - [ ] Yes, but only in two types of values. - [ ] No, they were not value-specific. > **Explanation:** Yes, Federal Revenue Stamps came in various denominations to correspond with different tax values, ensuring appropriate amounts were paid and documented. ### What type of transactions commonly required Federal Revenue Stamps during their usage? - [x] Sales of property and legal document processing - [ ] Sales of everyday consumer goods - [ ] Vehicle registration - [ ] Jury duty > **Explanation:** Sales of property and the processing of various legal documents commonly required Federal Revenue Stamps as proof that federal taxes had been paid. ### Did Federal Revenue Stamps apply to goods such as alcohol and tobacco? - [x] Yes, to indicate paid federal taxes on such goods - [ ] No, only to real estate - [ ] Yes, but only to exported goods - [ ] No, only to services > **Explanation:** Yes, Federal Revenue Stamps were used to indicate that federal taxes had been paid on goods such as alcohol and tobacco.