Rev. Rul. 68-276

Under the provisions of section 4293 of the Internal Revenue Code of 1954, the exemption for the United States provided by the authorization of the Secretary of the Treasury dated June 20, 1947, C.B. 1947-2, 205, continues to apply with respect to the tax imposed on amounts paid for communication services enumerated in section 4251 of the Code.

In certain situations, communication services and facilities are subscribed for by the United States Government under conditions in which there is no way by which the company furnishing the services and facilities can distinguish between official use and unofficial use of the services and facilities. Under Title 7 of the General Accounting Office Policy and Procedures Manual for Guidance of Federal Agencies, the accountable officer or appropriate administrative official is required to collect the regular charges in all cases where services or facilities are used by private individuals.

Held, the company furnishing the services and facilities to a United States agency may, for purposes of its records, treat all use of such services and facilities as though it is official and exempt from the tax imposed by section 4251 of the Code. However, the accountable officer or appropriate administrative official of the agency is responsible for collecting the tax from the individuals using the services and facilities for their personal or private business. The officer or official will also be responsible for filing the prescribed tax returns and reporting and paying the tax so collected to the District Director of Internal Revenue for the district in which is located the principal place of business of the company furnishing the services and facilities. This conclusion is in accord with the General Accounting Office manual referred to above.

This Revenue Ruling restates under current law the position set forth in S.T. 634, C.B. XII-1, 422 (1933). Therefore, S.T. 634 is hereby superseded.

¹ Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.