Rev. Rul. 72-537

Advice has been requested whether the tax on communication services imposed by section 4251(a) of the Internal Revenue Code of 1954 applies to amounts paid for the use of a telephone amplifier furnished by a telephone company to their subscribers who are hard of hearing.

Section 4251(a) of the Code imposes a tax on amounts paid for certain communication services, including local telephone services.

Section 4252(a) of the Code provides that for purposes of the communications tax the term "local telephone service" means (1) the access to a local telephone system and the privilege of telephonic quality communication with substantially all persons having telephone or radio telephone stations constituting a part of such local telephone system, and (2) any facility or service provided in connection with a service described in (1).

The amplifier is a facility provided by the telephone company in connection with local telephone service. Therefore, it is held that the amplifier is "local telephone service" within the meaning of section 4252(a) of the Code. Accordingly, amounts paid for the use of such amplifier are subject to the tax imposed by section 4251(a) of the Code.