Rev. Rul. 56-391

A company is engaged in rendering a telephone answering service under which it intercepts calls for its subscribers. Charges are made by the telephone company to the answering service company for extension lines or other facilities necessary in rendering such service. Held, the answering service furnished by the company to subscribers is not a telephone service within the meaning of section 4251 of the Internal Revenue Code of 1954. Accordingly, charges made by the company to its subscribers for such service are not subject to tax. However, charges made by the telephone company to the company furnishing the answering service for extension lines or other facilities constitute charges for local telephone service and are subject to tax under section 4251 of the Code.