[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR44.4905-1]

[Page 40-41]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 44_TAXES ON WAGERING; EFFECTIVE JANUARY 1, 1955--Table of Contents
 
 Subpart D_Miscellaneous and General Provisions Applicable to Taxes on 
                                Wagering
 
Sec. 44.4905-1  Change of ownership.

    (a) Changes through death. Whenever any person who has paid the 
special tax imposed by section 4411 dies, the surviving spouse or child, 
or executor or administrator, or other legal representative, may carry 
on such business for the remainder of the term for which such special 
tax has been paid without any additional payment, subject to the 
conditions hereinafter stated. If the surviving spouse or child, or 
executor or administrator, or other legal representative of the deceased 
taxpayer continues the business, such person shall within 30 days after 
the date of the death of the taxpayer execute a return on Form 11-C. 
Such return shall show the name of the deceased taxpayer, together with 
all other data required to be reported on Form 11-C (see Sec. 44.4412-
1), and the stamp issued to such taxpayer shall be submitted with the 
return for proper notation by the district director.
    (b) Changes from other causes. A receiver or trustee in bankruptcy 
may continue the business under the stamp issued to the taxpayer at the 
place and for the period for which the special tax was paid. An assignee 
for the benefit of creditors may continue business under his assignor's 
special tax stamp without incurring additional special tax liability. In 
such cases the change shall be registered with the district director in 
a manner similar to that required by paragraph (a) of this section.
    (c) Changes in firm. When one or more members of a firm partnership 
withdraw, the business may be continued by the remaining partner or 
partners under the same special tax stamp for the remainder of the 
period for which the stamp was issued to the old firm. The change shall, 
however, be registered in the same manner as required in paragraph (a) 
of this section. If new partners are taken into a firm the new firm so 
constituted may not carry on business under the special tax stamp of the 
old firm. The new firm shall make a return on Form 11-C and pay the 
special tax imposed by section 4411 reckoned from the first day of the 
month in which it began business, even though the name of such firm be 
the same as that of the old. If the members of a partnership, which has 
paid the special tax, form a corporation to continue the business a new 
special tax stamp must be obtained in the name of the corporation.
    (d) Change in corporation. If a corporation changes its name, no 
additional tax is due, provided the change in name is registered with 
the district director in the manner required by paragraph (a) of this 
section. An increase in the capital stock of a corporation does not 
create a new special tax liability if the laws of the State under which 
it is incorporated permit such increase without the formation of a new 
corporation. A stockholder in a corporation, who after its dissolution 
continues the business, incurs liability for the special tax imposed by 
section 4411 unless he already has a special tax

[[Page 41]]

stamp obtained in respect of activities conducted as a sole proprietor.