Under section 4251 of the Code, three types of "communications services" are subject to the tax: "local telephone service," "toll telephone service," and "teletypewriter exchange service
." Subject to certain exceptions, whether tax is due on long-distance calls turns on whether those services are "toll telephone service" within the meaning of section 4252(b):
4251 imposes a 3% Federal excise tax on amounts paid for communications services, which, for these purposes, is defined as (1) local telephone service, (2) toll telephone ser vice and (3) teletypewriter exchange service
. In Letter Ruling 200133008, the Service ruled that this tax does not apply to payments made to LECs for primary-rate-interface (PRI) line service and "other line services" provided by a communications network operator that sells access to Internet service providers (ISPs).