26 U.S.C. § 4251
There is hereby imposed on amounts paid for communications services a tax equal to the applicable percentage of amounts so paid.
The tax imposed by this section shall be paid by the person paying for such services.
For purposes of subsection (a)-
The term "communications services" means-
The term "applicable percentage" means 3 percent.
For purposes of subsections (a) and (b), in the case of communications services rendered before November 1 of a calendar year for which a bill has not been rendered before the close of such year, a bill shall be treated as having been first rendered on December 31 of such year.
For purposes of this subchapter, in the case of communications services acquired by means of a prepaid telephone card-
In the case of any prepaid telephone card which entitles the user other than to a specified dollar amount of use, the face amount shall be determined under regulations prescribed by the Secretary.
For purposes of this subsection, the term "prepaid telephone card" means any card or any other similar arrangement which permits its holder to obtain communications services and pay for such services in advance.
26 U.S.C. § 4251
EDITORIAL NOTES
CODIFICATIONThis subchapter, relating to the tax on communications, was repealed by Pub. L. 90-364, title I, §105(b)(3), June 28, 1968, 82 Stat. 266, as amended by Pub. L. 91-172, title VII, §702(b)(3), Dec. 30, 1969, 83 Stat. 660; Pub. L. 91-614, title II, §201(b)(3), Dec. 31, 1970, 84 Stat. 1843, effective with respect to amounts paid pursuant to bills first rendered on or after Jan. 1, 1982. In the case of communications services rendered before Nov. 1, 1981, for which a bill has not been rendered before Jan. 1, 1982, a bill shall be treated as having been first rendered on Dec. 31, 1981.Pub. L. 96-499, title XI, §1151, Dec. 5, 1980, 94 Stat. 2694; Pub. L. 97-34, title VIII, §821, Aug. 13, 1981, 95 Stat. 351; Pub. L. 97-248, title II, §282(a), Sept. 3, 1982, 96 Stat. 568; Pub. L. 98-369, div. A, title I, §26, July 18, 1984, 98 Stat. 507; Pub. L. 99-514, title XVIII, §1801(b), Oct. 22, 1986, 100 Stat. 2785; Pub. L. 100-203, title X, §10501, Dec. 22, 1987, 101 Stat. 1330-438; Pub. L. 101-508, §11217(a), Nov. 5, 1990, 104 Stat. 1388-437, amended this section, relating to the imposition of the tax on communications, extending the date in (and finally eliminating) provisions which had reduced the tax to zero after a specified date, without amending Pub. L. 90-364, title I, §105(b)(3), June 28, 1968, 82 Stat. 266, which, as amended, had repealed this subchapter, effective with respect to amounts paid pursuant to bills first rendered on or after Jan. 1, 1982.
AMENDMENTS1998-Subsec. (d)(3). Pub. L. 105-206 substituted "any other similar arrangement" for "other similar arrangement". 1997-Subsec. (d). Pub. L. 105-34 added subsec. (d).1990-Subsec. (b)(2). Pub. L. 101-508 substituted "percent." for "percent; except that, with respect to amounts paid pursuant to bills first rendered after 1990, the applicable percentage shall be zero."1987-Subsec. (b)(2). Pub. L. 100-203 amended par. (2) generally. Prior to amendment, par. (2) read as follows: "The term 'applicable percentage' means-
| "With respect to amount paid pursuant to bills first rendered: | The percentage is: |
| During 1983, 1984, 1985, 1986, or 1987 | 3 |
| During 1988 or thereafter | 0." |
| "Amounts paid pursuant to bills first rendered- | Percent- |
| Before January 1, 1973 | 10 |
| During 1973 | 9 |
| During 1974 | 8 |
| During 1975 | 7 |
| During 1976 | 6 |
| During 1977 | 5 |
| During 1978 | 4 |
| During 1979 | 3 |
| During 1980 or 1981 | 2 |
| During 1982, 1983, or 1984 | 1" |
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 1998 AMENDMENTAmendment by Pub. L. 105-206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such amendment relates, see section 6024 of Pub. L. 105-206, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105-34, §1034(b), Aug. 5, 1997, 111 Stat. 937, provided that: "The amendments made by this section [amending this section] shall apply to amounts paid in calendar months beginning more than 60 days after the date of the enactment of this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99-514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99-514, set out as a note under section 48 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97-248, title II, §282(b), Sept. 3, 1982, 96 Stat. 568, provided that: "The amendment made by subsection (a) [amending this section] shall apply with respect to amounts paid for communications services pursuant to bills first rendered after December 31, 1982."
EFFECTIVE DATE OF 1968 AMENDMENTS Amendment by Pub. L. 90-364 effective Apr. 30, 1968, see section 105(c) of Pub. L. 90-364, set out as a note under section 6412 of this title.Amendment by Pub. L. 90-285 effective Mar. 31, 1968, see section 1(b) of Pub. L. 90-285, set out as a note under section 6412 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT Pub. L. 89-368, title II, §202(c), Mar. 15, 1966, 80 Stat. 66, provided that: "The amendments made by subsections (a) [amending this section] and (b) [amending section 4253 of this title] shall apply to amounts paid pursuant to bills first rendered on or after April 1, 1966, for services rendered on or after such date. In the case of amounts paid pursuant to bills rendered on or after such date for services which were rendered before such date and for which no previous bill was rendered, such amendments shall apply except with respect to such services as were rendered more than 2 months before such date. In the case of services rendered more than 2 months before such date, the provisions of subchapter B of chapter 33 of the Code in effect at the time such services were rendered, subject to the provision of section 701(b)(2) of the Excise Tax Reduction Act of 1965 [see Effective Date of 1965 Amendment note below], shall apply to the amounts paid for such services."
EFFECTIVE DATE OF 1965 AMENDMENT Pub. L. 89-44, title VII, §701(b)(2)(A), June 21, 1965, 79 Stat. 156, provided that: "The amendments made by section 302 [amending this section and sections 4252, 4253, and 4254 of this title] (relating to communication services) shall apply to amounts paid pursuant to bills rendered on or after January 1, 1966, for services rendered on or after such date. In the case of amounts paid pursuant to bills rendered on or after January 1, 1966, for services which were rendered before such date and for which no previous bill was rendered, such amendments shall apply except with respect to such services as were rendered more than 2 months before such date. In the case of services rendered more than 2 months before such date, the provisions of subchapter B of chapter 33 of the Code in effect at the time such services were rendered shall apply to the amounts paid for such services."
EFFECTIVE DATE OF 1958 AMENDMENT Pub. L. 85-859, title I, §133(b), Sept. 2, 1958, 72 Stat. 1292, as amended by Pub. L. 99-514, §2, Oct. 22, 1986, 100 Stat. 2095, provided that:"(1) Subject to the provisions of paragraph (2), the amendment made by subsection (a) [amending this section and sections 4252 to 4254 of this title] shall apply with respect to amounts paid on or after the effective date prescribed in section (1)(c) of this Act for services rendered on or after such date."(2) The amendment made by subsection (a) [amending this section and sections 4252 to 4254 of this title] shall not apply with respect to amounts paid pursuant to bills rendered before the effective date prescribed in section 1(c) of this Act. In the case of amounts paid pursuant to bills rendered on or after such date for services for which no previous bill was rendered, such amendments shall apply except with respect to such services as were rendered more than 2 months before such date. In the case of services rendered more than 2 months before such date the provisions of subchapter B of chapter 33 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] in effect at the time such services were rendered shall apply to the amounts paid for such services."
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101-1147 and 1171-1177] or title XVIII [§§1800-1899A] of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of this title.
- Internal Revenue Code of 1986
- The term "Internal Revenue Code of 1986" means this title, and the term "Internal Revenue Code of 1939" means the Internal Revenue Code enacted February 10, 1939, as amended.
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- taxpayer
- The term "taxpayer" means any person subject to any internal revenue tax.