[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: 26CFR49.4253-2]

[Page 246-247]
 
                       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. 49.4253-2  Exemption for news services.

    (a) In general. The exemption for news services provided by section 
4253(b) is applicable to payments for services of the kind listed in 
section 4251, except general telephone service. The exemption will apply 
only with respect to payments for services which are utilized 
exclusively:
    (1) In the collection of news for the public press or radio or 
television broadcasting or in the dissemination of news through the 
public press or by means of radio or television broadcasting; or
    (2) In the collection or dissemination of news by a news ticker 
service furnishing a general news service similar to that of the public 
press.

For the exemption to apply, the charge for the services must be billed 
in writing to the person paying for the services and such person must 
certify in writing that the services are so utilized.
    (b) Scope of the exemption. (1) The exemption applies to amounts 
charged for messages from any newspaper, press association, radio or 
television news broadcasting agency, or news ticker service, to any 
other newspaper, press association, radio or television news 
broadcasting agency, or news ticker service or to or from their bona 
fide correspondents, which messages deal exclusively with the collection 
of news items for, or the dissemination of news items through, the 
public press, radio or television broadcasting, or a news ticker service 
furnishing a general news service similar to that of the public press. 
The exemption does not extend to messages of an administrative nature 
such as messages transmitting

[[Page 247]]

funds to correspondents, messages to correspondents relating to 
assignments or hotel accommodations, etc.
    (2) The exemption does not extend to the collection and 
dissemination of information or matters for publication in magazines, 
periodicals, and trade and scientific publications issued to supply 
information on certain subjects of interest to particular groups; or to 
amounts paid by newspapers, press associations, radio or television news 
broadcasting agencies or networks, or news ticker services, for general 
telephone service taxable under section 4251.