Internal Revenue Service, Treasury § 49.4253–3

fixed monthly or other periodic charge formation or matters for publication in is subject to the tax imposed on magazines, periodicals, and trade and amounts paid for general telephone scientific publications issued to supply service. The tax applies to the full information on certain subjects of in- amount of the guarantee whether such terest to particular groups; or to amount is paid out of receipts from the amounts paid by newspapers, press as- coin-box of the telephone or from funds sociations, radio or television news of the subscriber. broadcasting agencies or networks, or news ticker services, for general tele- § 49.4253–2 Exemption for news serv- ices. phone service taxable under section 4251. (a) In general. The exemption for news services provided by section § 49.4253–3 Exemption for certain or- 4253(b) is applicable to payments for ganizations. services of the kind listed in section 4251, except general telephone service. (a) The American National Red Cross. The exemption will apply only with re- The taxes imposed by section 4251 do spect to payments for services which not apply to amounts paid for services are utilized exclusively: furnished to the American National (1) In the collection of news for the Red Cross. public press or radio or television (b) International organizations. The broadcasting or in the dissemination of taxes imposed by section 4251 do not news through the public press or by apply to amounts paid for services fur- means of radio or television broad- nished to an international organiza- casting; or tion. See section 7701(a) (18) for the def- (2) In the collection or dissemination inition of ‘‘international organiza- of news by a news ticker service fur- tion’’. An international organization is nishing a general news service similar designated as such by the President of to that of the public press. the United States through an Execu- For the exemption to apply, the charge tive order or orders. When an organiza- for the services must be billed in writ- tion has been designated by the Presi- ing to the person paying for the serv- dent as entitled to enjoy the privileges, ices and such person must certify in exemptions, and immunities conferred writing that the services are so uti- by the International Organizations Im- lized. munities Act, or part thereof, includ- (b) Scope of the exemption. (1) The ex- ing exemption from tax, the exemption emption applies to amounts charged applies to the taxes imposed by section for messages from any newspaper, press 4251 on amounts paid for services un- association, radio or television news less the President otherwise provides. broadcasting agency, or news ticker The exemptions is subject to with- service, to any other newspaper, press drawal or revocation by the President. association, radio or television news In case of withdrawal or revocation, broadcasting agency, or news ticker unless otherwise provided by the Presi- service or to or from their bona fide dent, the exemption is inapplicable to correspondents, which messages deal payments made on or after the date of exclusively with the collection of news items for, or the dissemination of news issuance of the order of withdrawal or items through, the public press, radio the date of revocation. or television broadcasting, or a news (c) Exemption certificate. (1) No exemp- ticker service furnishing a general tion certificate is required under this news service similar to that of the pub- section where the payment for the lic press. The exemption does not ex- services furnished is made by the tend to messages of an administrative American National Red Cross direct to nature such as messages transmitting the person furnishing the services. In funds to correspondents, messages to all other cases the right to exemption correspondents relating to assignments under section 4253(c) shall be evidenced or hotel accommodations, etc. by properly executed exemption certifi- (2) The exemption does not extend to cates in substantially the following the collection and dissemination of in- form:

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