Publication 510 - Excise Taxes - 2004 (Page 4 of 48) in pdf

•

a different ODC than the one specified in the

The ODC weight that should be specified

Communications and

table.

(unless the product is being removed).

•

Part II of the table lists electronic items that

The data supporting the request.

Air Transportation

are not included within any other list in the table.

An imported product is included in this list only if

Taxes

Send your request to the following ad-

the product meets one of the following tests.

dress.

Excise taxes are imposed on amounts paid for

1) It is an electronic component whose oper-

certain facilities and services. If you receive any

ation involves the use of nonmechanical

payment on which tax is imposed, you are re-

amplification or switching devices such as

Internal Revenue Service

quired to collect the tax, file returns, and pay the

tubes, transistors, and integrated circuits.

P.O. Box 7604

tax over to the government.

Ben Franklin Station

2) It contains components described in (1),

If you fail to collect and pay over the taxes,

Attn: CC:PA:LPD:PR

which account for more than 15% of the

you may be liable for the trust fund recovery

(Imported Products Table)

cost of the product.

penalty. See Penalties and Interest, later.

Room 5206

These components do not include passive

Washington, DC 20044

Communications Tax

electrical devices, such as resistors and capaci-

tors. Items such as screws, nuts, bolts, plastic

Floor Stocks Tax

A 3% tax is imposed on amounts paid for all the

parts, and similar specially fabricated parts that

following communications services.

may be used to construct an electronic item are

Tax is imposed on any ODC held (other than by

•

not themselves included in the listing for elec-

Local telephone service.

the manufacturer or importer of the ODC) on

tronic items.

•

January 1 for sale or use in further manufactur-

Toll telephone service.

ing. The person holding title (as determined

Rules for listing products. Products are

•

Teletypewriter exchange service.

under local law) to the ODC is liable for the tax,

listed in the table according to the following

whether or not delivery has been made.

rules.

Local telephone service. This includes ac-

These chemicals are taxable without regard

1) A product is listed in Part I of the table if it

cess to a local telephone system and the privi-

to the type or size of storage container in which

is a mixture containing ODCs.

lege of telephonic quality communication with

the ODCs are held. The tax may apply to an

most people who are part of the system. Local

ODC whether it is in a 14-ounce can or a

2) A product is listed in Part II of the table if

telephone service also includes any facility or

30-pound tank.

the Commissioner has determined that the

services provided in connection with this serv-

ODCs used as materials in the manufac-

You are liable for the floor stocks tax if you

ice. The tax applies to lease payments for cer-

ture of the product under the predominant

hold any of the following on January 1.

tain customer premises equipment (CPE) even

method are used for purposes of refrigera-

though the lessor does not also provide access

tion or air conditioning, creating an aerosol

1) At least 400 pounds of ODCs other than

to a local telecommunications system.

or foam, or manufacturing electronic com-

halons or methyl chloroform,

ponents.

Private communication service. Private

2) At least 50 pounds of halons, or

communication service is not local telephone

3) A product is listed in Part III of the table if

service. Private communication service includes

3) At least 1,000 pounds of methyl chloro-

the Commissioner has determined that the

accessory-type services provided in connection

form.

product meets both the following tests.

with a Centrex, PBX, or other similar system for

If you are liable for the tax, prepare an inven-

dual use accessory equipment. However, the

a) It is not an imported taxable product.

tory on January 1 of the taxable ODCs held on

charge for the service must be stated separately

that date for sale or for use in further manufac-

b) It would otherwise be included within a

from the charge for the basic system, and the

turing. You must pay this floor stocks tax by

list in Part II of the table.

accessory must function, in whole or in part, in

June 30 of each year. Report the tax on Form

connection with intercommunication among the

6627 and Part II of Form 720 for the second

For example, floppy disk drive units are listed

subscriber’s stations.

calendar quarter.

in Part III because they are not imported taxable

Toll telephone service. This includes a tele-

products and would have been included in the

For the tax rates, see the Form 6627 instruc-

phonic quality communication for which a toll is

Part II list for electronic items not specifically

tions.

charged that varies with the distance and

identified, but for their listing in Part III.

elapsed transmission time of each communica-

ODC weight. The Table ODC weight of a

ODCs not subject to floor stocks tax. The

tion. The toll must be paid within the United

product is the weight, determined by the Com-

floor stocks tax is not imposed on any of the

States. It also includes (a) a telephonic quality

missioner, of the ODCs used as materials in the

following ODCs.

communication for which a toll is charged that

manufacture of the product under the predomi-

varies only with elapsed transmission time and

nant method of manufacturing. The ODC weight

1) ODCs mixed with other ingredients that

(b) a long distance service that entitles the sub-

is listed in Part II in pounds per single unit of

scriber to make unlimited calls (sometimes lim-

contribute to achieving the purpose for

product unless otherwise specified.

ited as to the maximum number of hours) within

which the mixture will be used, unless the

a certain area for a periodic charge.

mixture contains only ODCs and one or

Modifying the table. A manufacturer or im-

more stabilizers.

porter of a product may request the IRS add a

Teletypewriter exchange service. This in-

product and its ODC weight to the table. They

2) ODCs contained in a manufactured article

cludes access from a teletypewriter or other

also may request the IRS remove a product from

in which the ODCs will be used for their

data station to a teletypewriter exchange system

the table, or change or specify the ODC weight

intended purpose without being released

and the privilege of intercommunication by that

of a product.

from the article.

station with most persons having teletypewriter

To request a modification, include your

or other data stations in the same exchange

3) ODCs that have been reclaimed or re-

name, address, taxpayer identification number,

system.

cycled.

and principal place of business in your request.

Figuring the tax. The tax is based on the sum

4) ODCs sold in a qualifying sale for:

The request must include the following informa-

of all charges for local or toll telephone service

tion for each product to be modified.

a) Use as a feedstock,

included in the bill. However, if the bill groups

•

The name of the product.

individual items for billing and tax purposes, the

b) Export, or

tax is based on the sum of the individual items

•

The HTS heading or subheading.

c) Use as a propellant in a metered-dose

within that group. The tax on the remaining items

•

The type of modification requested.

inhaler.

not included in any group is based on the charge

Page 4

Publication 510 - Excise Taxes - 2004 Page 4

Related Articles

Related forms

Related Categories