File Local Telephone Service & Teletypewriter Exchange Service Tax Online with Simple720!

  • User-friendly and streamlined filing interface
  • Fast, secure, and IRS-compliant e-filing
  • No installation or additional software needed
Domestic Petroleum Oil Spill Tax

What is Local Telephone Service & Teletypewriter Exchange Service Tax(IRS Num 22)?

The Local Telephone Service and Teletypewriter Exchange Service Tax is a federal excise tax imposed under Section 4251 of the Internal Revenue Code (IRC) on amounts paid for local telephone service and teletypewriter exchange service. This tax falls under the Communications and Air Transportation Taxes category reported on Form 720 (Quarterly Federal Excise Tax Return).

Key Points
  • A 3 percent federal excise tax is imposed on amounts paid for local telephone service and teletypewriter exchange service.
  • Local telephone service includes access to a local telephone system and the privilege of telephonic-quality communication with substantially all persons on that system, as well as related facilities or services.
  • Teletypewriter exchange service is a communications service as defined in IRC Section 4251(b), historically applicable to teletype data services.
 
  • The tax is imposed on the person paying for the service (the consumer).
  • Service providers are responsible for collecting the tax from their customers and remitting it to the IRS.
  • The tax applies to amounts paid for the communications service, excluding separate state/local taxes if separately stated on the bill.

Who Is Responsible for Paying the Local Telephone &
Teletypewriter Exchange Service Tax(IRS Num 22)?

The responsibility for paying the tax generally falls on:

  • Customers/consumers who pay for local telephone and teletypewriter exchange services.
  • Service providers are responsible for collecting the tax
    from their customers and remitting it to the IRS.
  • Service providers (telecommunications companies) must collect the tax on these services and report and remit it to the IRS on Form 720, Quarterly Federal Excise Tax Return in the period when the tax liability arises.

Why Choose Electronic Filing for Your Local Telephone & Teletypewriter Exchange Service Tax(IRS Num 22)?

Organized Maintenance and Easy Access
Keep your local telephone and teletypewriter exchange service tax filings in one place with organized, digital records. Access and manage your filings anytime, streamlining future reference and tax preparation.
Cost-Effective and Time-Saving
Say goodbye to costly paper forms and time-consuming manual processes. Electronic filing minimizes administrative costs and saves you valuable time, ensuring your tax returns are filed efficiently.
Instant Acknowledgement and Confirmation
Get real-time confirmation of your filing! Electronic filing provides instant acknowledgment from the IRS, so you can be sure your local telephone and teletypewriter exchange service tax return has been submitted and accepted without delays.

3 Steps to Complete Your Local Telephone & Teletypewriter
Exchange Service Tax(IRS Num 22) Filing with Simple720

STEP 1
Enter Business Details
Provide your business name, address, EIN, and contact information.
Filing Steps Image 1
Filing Steps Image 2
STEP 2
Tax Information
Navigate to Communications and Air Transportation Taxes and select Local Telephone and Teletypewriter Exchange Services (22).
Enter
  • Date of amounts billed
  • Date of collection(Assumed)
  • Taxed Amount
STEP 3
Payment Information
Review the tax amount and select your preferred payment method to finalize the filing.
Filing Steps Image 3

Why Choose Simple720 for Filing Your Local Telephone & Teletypewriter Exchange Service Tax(IRS Num 22)?

IRS-Authorized Electronic Filing with a Secure Platform
Simple720 is an IRS-authorized e-filing provider for Local Telephone & Teletypewriter Exchange Service Tax, ensuring that your filings are secure, compliant with IRS regulations, and processed smoothly. With Simple720's AICPA SOC-compliant platform, your sensitive business and tax data are protected every step of the way.
Low-Cost Processing with No Hidden Fees
At Simple720, we offer an affordable way to file your Local Telephone & Teletypewriter Exchange Service Tax with clear, upfront pricing. Our transparent pricing structure ensures that businesses of all sizes can file without worrying about hidden costs or surprise fees.
No Software Downloads, File Anywhere
File your Local Telephone & Teletypewriter Exchange Service Tax with ease, directly through Simple720's cloud-based platform. There's no need to download or install software. Just log in and file from anywhere, anytime, with no hassle or extra setup required.

Simple720 Vs Others

IRS Authorized e-Filer Brand X Brand Y Brand Z
Cloud-Based No No No
Software Download Yes-PC Only Yes Yes
License Required Required Required
Annual Contract Required Required Required
All Excise Taxes Fuel Taxes Only No No
Cost $1,000+/yr. $1,500+/yr. $5,000+/yr.
Testimonial
What Clients Are Saying

Frequently Asked Questions

It is a federal excise tax imposed under IRC Section 4251 on amounts paid for local telephone and teletypewriter exchange services. This tax is part of the Communications and Air Transportation Taxes reported on Form 720.

The tax applies to charges for local telephone service and access to a local telephone system that allows voice communication. It also applies to teletypewriter exchange service, which includes data access to a teletype exchange system.

A 3% excise tax is imposed on the amounts paid for local telephone and teletypewriter exchange services. The tax base generally includes all charges for the service as shown on the customer's bill.

The tax is paid by the person paying for the service (usually the consumer). Service providers (telephone companies) collect the tax from customers and remit it to the IRS.

State or local sales and use taxes that are separately stated on the bill are not included in the federal excise tax base. Certain services billed separately that aren't local telephone or teletypewriter exchange services may also be excluded.

Want to learn more?
Request a free demo today! Our experts are ready to assist you.

Book a Demo
infoTag