Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 68-93

1968-1 C.B. 488

Full Text

Rev. Rul. 68-93

In connection with installing color telephones, `princess' telephones, and `touch-tone' telephones, a telephone company makes extra charges.

Held , these extra charges are not amounts paid for local telephone service within the meaning of section 4251(a) of the Internal Revenue Code of 1954. Accordingly, such amounts are not subject to the tax on communications imposed by section 4251 of the Code. However, amounts paid as additional monthly charges for the use of such telephones are subject to the tax imposed by that section.