[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: 26CFR49.4253-1]

[Page 246]
 
                       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. 49.4253-1  Exemption for certain coin-operated service.

    (a) In general. Except as provided in paragraph (b) of this section, 
the tax imposed on amounts paid for general telephone service is not 
applicable to a single telephone conversation paid for by inserting 
coins in a public coin-operated telephone. The tax imposed on amounts 
paid for toll telephone service or telegraph service is not applicable 
to a single telephone conversation for which a tool charge is made (see 
paragraph (a) of Sec. 49.4252-2), or to a telegraph message, if the 
charge for such toll telephone service (including any additional charge 
for overtime) or telegraph service is less than 25 cents and is paid for 
by inserting coins in a public coin-operated telephone.
    (b) Exception where service furnished for a guaranteed amount. Where 
a coin-operated telephone service is furnished for a guaranteed amount, 
the amount paid under such guarantee plus any fixed monthly or other 
periodic charge is subject to the tax imposed on amounts paid for 
general telephone service. The tax applies to the full amount of the 
guarantee whether such amount is paid out of receipts from the coin-box 
of the telephone or from funds of the subscriber.