Merchants National Bank v. United States

The question presented in this case is whether plaintiff is entitled to a refund of the stamp tax paid by it on 20,000 shares of its preferred stock which it issued to the Reconstruction Finance Corporation. The tax was collected under section 800 of the revenue act of 1926 and that act as amended by section 722 of the revenue act of 1932, by which sections a stamp tax at a specified rate was imposed on the original issue of shares of corporate stock. (47 Stat. 169,272.)

The parties are agreed that the tax in question was properly collected unless the plaintiff was exempted from the provisions…