(a) General. A special tax stamp is a receipt for tax, personal to the one to whom issued, and is not transferable from one manufacturer of tobacco products, manufacturer of cigarette papers and tubes, or export warehouse proprietor to another. If there is a change in the ownership of a special-tax payer, the successor must pay a new special (occupational) tax and obtain the required special tax stamp(s). Examples of changes in ownership that require payment of a new special tax include, but are not limited to, the following:

(1) Sale of business;

(2) Formation of a partnership by two persons who have paid special tax;

(3) Addition of a partner;

(4) Incorporation of the business;

(5) Creation of a new corporation to replace one or more corporations that have paid special tax; and

(6) Stockholder continuing the business of a corporation after its dissolution.

(b) Changes that do not require payment of a new special tax. The following changes do not require payment of a special tax:

(1) Increase in capital stock of a corporation.

(2) Change in ownership of any or all of the capital stock of a corporation.

(c) Exemption for certain successors. Persons identified in paragraph (d) of this section as having the right of succession may carry on the business for the remainder of the tax year for which the special tax was paid, without paying a new special tax, if within 30 days after the date on which the successor begins to carry on the business, the successor files with TTB a special tax return on TTB Form 5630.5t showing the basis of succession. A person who is a successor to a business for which special tax has been paid, and who fails to register the succession, is liable for special tax computed from the first day of the calendar month in which the successor began to carry on the business.

(d) Persons having right of succession. The right of succession referred to in paragraph (c) of this section will pass to the identified persons in the following circumstances:

(1) Death. The surviving spouse or child, or the executor, administrator, or other legal representative, of a deceased taxpayer;

(2) Succession of spouse. A husband or wife succeeding to the business of his or her living spouse;

(3) Insolvency. A receiver or trustee in bankruptcy, or an assignee for the benefit of creditors;

(4) Withdrawal from firm. The partner or partners remaining after the death or withdrawal of a member of a partnership.

(26 U.S.C. 5733)