26Title 26The US tax code, read & explained

26 U.S.C. § 4251

§ 4251. Imposition of tax

298 words · amended 22 times · cited by 4 other sections

Compare on Cornell LII Official XML (House)

No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Part of the code since 1954. Last changed July 22, 1998 by the IRS Restructuring and Reform Act of 1998.

Every change, newest first (23)
  1. July 22, 1998IRS Restructuring and Reform Act of 1998
  2. August 5, 1997Taxpayer Relief Act of 1997
  3. November 5, 1990Omnibus Budget Reconciliation Act of 1990
  4. December 22, 1987Omnibus Budget Reconciliation Act of 1987
  5. October 22, 1986Tax Reform Act of 1986
  6. July 18, 1984Deficit Reduction Act of 1984
  7. September 3, 1982Tax Equity and Fiscal Responsibility Act of 1982
  8. August 13, 1981Economic Recovery Tax Act of 1981
  9. December 5, 1980Public Law 96-499
  10. December 31, 1970Public Law 91-614
  11. December 30, 1969Tax Reform Act of 1969
  12. June 28, 1968Public Law 90-364
  13. April 12, 1968Public Law 90-285
  14. March 15, 1966Public Law 89-368
  15. June 21, 1965Public Law 89-44
  16. June 30, 1964Public Law 88-348
  17. June 29, 1963Public Law 88-52
  18. June 28, 1962Public Law 87-508
  19. June 30, 1961Public Law 87-72
  20. June 30, 1960Public Law 86-564
  21. June 30, 1959Public Law 86-75
  22. September 2, 1958Technical Amendments Act of 1958
  23. August 16, 1954Internal Revenue Code of 1954 (original text)

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) Tax imposed
  2. (b) Definitions
  3. (c) Special rule
  4. (d) Treatment of prepaid telephone cards
(a) Tax imposed
(1) In general

There is hereby imposed on amounts paid for communications services a tax equal to the applicable percentage of amounts so paid.

(2) Payment of tax

The tax imposed by this section shall be paid by the person paying for such services.

(b) Definitions

For purposes of subsection (a)—

(1) Communications services

The term “communications services” means—

(A)

local telephone service;

(B)

toll telephone service; and

(C)

teletypewriter exchange service.

(2) Applicable percentage

The term “applicable percentage” means 3 percent.

(c) Special rule

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.

(d) Treatment of prepaid telephone cards
(1) In general

For purposes of this subchapter, in the case of communications services acquired by means of a prepaid telephone card—

(A)

the face amount of such card shall be treated as the amount paid for such communications services, and

(B)

that amount shall be treated as paid when the card is transferred by any telecommunications carrier to any person who is not such a carrier.

(2) Determination of face amount in absence of specified dollar amount

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.

(3) Prepaid telephone card

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.