26 CFR § 49.4254-2 - Payment for toll telephone service or telegraph service in coin-operated telephones.
---
identifier: "/us/cfr/t26/s49.4254-2"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 49.4254-2 - Payment for toll telephone service or telegraph service in coin-operated telephones."
title_number: 26
title_name: "Internal Revenue"
section_number: "49.4254-2"
section_name: "Payment for toll telephone service or telegraph service in coin-operated telephones."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "D"
subchapter_name: "MISCELLANEOUS EXCISE TAXES"
part_number: "49"
part_name: "FACILITIES AND SERVICES EXCISE TAXES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805."
cfr_part: "49"
---
# 49.4254-2 Payment for toll telephone service or telegraph service in coin-operated telephones.
Where the tax on a toll telephone or radio telephone message or conversation, or a telegraph, cable, or radio dispatch or message is paid by inserting coins in a coin-operated telephone, the tax shall be computed to the nearest multiple of 5 cents, and where the tax is midway between multiples of 5 cents, the next highest multiple shall apply. In other words, one-half or a greater fraction of 5 cents shall be treated as 5 cents and a smaller fraction shall be ignored.