§ 4254 Computation of tax

OLRC 119-134 · eCFR 2026-10-19 · 2 regs · 3 amending Acts

Enacted 1954 · Act Aug. 16, 1954, ch. 736 Amended · 3 Acts · From 1939 Code § 3465

1954195819651977(a) General rule(b) Where payment is made for toll telephone service in coin-operated telephones(c) Certain State and local taxes not included
Connections Cited by 0 · Cites 1
    § 4254 Computation of tax
    § 49.4254-1 Computation of tax.§ 49.4254-2 Payment for toll telephone service or telegraph service in coin-operated telephones.

    (a) General rule If a bill is rendered the taxpayer for local telephone service or toll telephone service—

    Amended 1958, 1965
    • 1965 Pub. L. 89-44 Pub. L. 89–44 substituted “local telephone service or toll telephone service” for “general telephone service, toll telephone service, or telegraph service”.
    • 1958 Pub. L. 85-859 Pub. L. 85–859 provided that if the person who renders the bill groups individual items for purposes of rendering the bill and computing the tax, then the amount on which the tax with respect to each group shall be based shall be the sum of all items within that group, and the tax on remaining items not included in any such group shall be based on the charge of each item separately.

    Cases: In re WorldCom, Inc., 723 F.3d 346 (2d Cir. 2013)

    (1) the amount on which the tax with respect to such services shall be based shall be the sum of all charges for such services included in the bill; except that

    (2) if the person who renders the bill groups individual items for purposes of rendering the bill and computing the tax, then (A) the amount on which the tax with respect to each such group shall be based shall be the sum of all items within that group, and (B) the tax on the remaining items not included in any such group shall be based on the charge for each item separately.

    (b) Where payment is made for toll telephone service in coin-operated telephones If the tax imposed by section 4251 with respect to toll telephone service is paid by inserting coins in coin-operated telephones, tax shall be computed to the nearest multiple of 5 cents, except that, where the tax is midway between multiples of 5 cents, the next higher multiple shall apply.

    Amended 1958, 1965
    • 1965 Pub. L. 89-44 Pub. L. 89–44 substituted “toll telephone service” for “toll telephone service or telegraph service” in catchline and text.
    • 1958 Pub. L. 85-859 Pub. L. 85–859 substituted “toll telephone service” for “long distance telephone service”.

    (c) Certain State and local taxes not included For purposes of this subchapter, in determining the amounts paid for communications services, there shall not be included the amount of any State or local tax imposed on the furnishing or sale of such services, if the amount of such tax is separately stated in the bill.

    Amended 1977