[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: 26CFR49.4252-6]

[Page 244-245]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 49_FACILITIES AND SERVICES EXCISE TAXES--Table of Contents
 
                        Subpart C_Communications
 
Sec. 49.4252-6  Wire mileage service.

    (a) In general. The meaning of the term ``wire mileage service'' 
differs depending upon the date on which the service is furnished. For 
services furnished on or after January 1, 1963, the term means any 
telephone or radiotelephone service not used in the conduct of a trade 
or business, and any other wire or radio circuit service not used in the 
conduct of a trade or business, which is not included in Sec. Sec. 
49.4252-1 through 49.4252-3, 49.4252-5, and 49.4252-7. The term ``trade 
or business'' as used in this section includes activities of 
organizations which are conducted with no purpose of gain or profit. For 
services furnished before January 1, 1963, the term means any telephone 
or radiotelephone service, and any other wire or radio circuit service, 
which is not included in Sec. Sec. 49.4252-1 through 49.4252-3, 
49.4252-5, and 49.4252-7. However, regardless of the date on which the 
service is furnished, any service which is exempt from tax for any 
reason specified in section 4253 is not included in wire mileage 
service. In general, the term means (except as qualified by the 
preceding sentences of this paragraph) any telephone or radiotelephone 
service, and any other wire or radio circuit service, which may not be 
connected, directly or indirectly, to an exchange operated by a person 
engaged in the business of furnishing communication service. Wire 
mileage service ordinarily relates to private line or private channel 
service where lines or channels, equipment, and other facilities are 
furnished (usually but not necessarily, on a contractual basis) to 
enable users to communicate between specified locations continuously or 
for specified periods, as distinguished from

[[Page 245]]

the sending of single dispatches, messages, and conversations by 
telephone, radiotelephone, telegraph, cable, or radio, for which tolls 
are charged by the carrier. The communications may be telephonic or in 
code, or may be reproduced at the terminating end in the form of a 
typewritten page or tape, or picture facsimile. The term ``wire mileage 
service'' does not include any service which is used exclusively in 
furnishing wire and equipment service.
    (b) Examples. The following are examples of wire mileage service 
(except that in the case of services furnished on or after January 1, 
1963, wire mileage service does not include any such services used in 
the conduct of a trade or business):
    (1) Channels and equipment for private telephone service,
    (2) Channels and equipment for private code service,
    (3) Channels and equipment for private teletypewriter or teleprinter 
service,
    (4) Channels and equipment for program transmission, and
    (5) Channels and equipment for photograph, picture or facsimile 
transmission, etc.
    (c) Amounts paid. In determining the amount of tax due, the amount 
paid for the service shall include all charges made in connection with 
the furnishing of any wire mileage service, such as salaries of 
operators, if in the employ of the person furnishing such service, 
charges for equipment, instruments, and other apparatus other than 
station terminal equipment. In cases where a person leases lines or 
channels, equipment, and other facilities used in conjunction with wire 
mileage service, the amounts paid by such person for such lines or 
channels, equipment, and other facilities constitute amounts paid for 
wire mileage service, notwithstanding the fact that the lines or 
channels, equipment, and other facilities used in conjunction with such 
service are supplied by different persons or in part by the user of such 
service.
    (d) Exemptions. For exemptions from the tax imposed on amounts paid 
for wire mileage service, see sections 4253, 4292, 4293, and 4294, and 
the regulations thereunder contained in this part.