Communications & Air Transportation Tax

You must file Communications and Air Transportation Taxes if you: • Provide local telephone service or teletypewriter exchange service (IRS No. 22). • Provide air passenger transportation services (IRS No. 26). • Provide air cargo transportation (IRS No. 28). • Provide international air travel facilities (IRS No. 27). • Collect tax payments from customers for communications or air transportation services. • Fail to collect tax — in this case, a separate uncollected tax report must be filed.

Before you start, have ready: • Your business name, address, and Employer Identification Number (EIN). • Records of billed amounts, fares, tickets, and segments for the quarter. • Any exemptions (rural airports, fractional ownership programs, private aircraft management services). • Documentation for credits or refunds where tax was improperly collected.

Date of Amounts Billed – select the billing date. Date of Collection (Assumed) – required if using the Alternative Method. Method of Filing – Leave as Alternative Method (default), or Check the box to use the Regular Method. If your business has no excise-taxable activity, check "None." Enter the taxed Amount Note: For Communication Tax, the system does not auto-calculate — you are responsible for computing and entering the correct tax (3% of taxable amounts).

Double-check the billed amounts are correctly applied. Ensure that "Regular Method" or "Alternative Method" is selected for deposits: Regular Method: Report deposits semimonthly (1st–15th, 16th–end of month). Alternative Method: Requires "Date of Amounts Billed" in the current quarter and "Date of Collection" in the next quarter. System logic ensures errors are flagged automatically before submission.

Pay taxes due by the IRS deposit deadlines. Regular Method: deposits due on the 14th or 29th (adjusted for weekends/holidays). Alternative Method: dates auto-calculated from billing to next-quarter collection. Keep copies of filed returns, supporting records, and payment confirmations for three years.

Visit our FAQ or click the help icon in your dashboard. For detailed cases (fractional ownership, exemptions, refund claims), consult a tax professional or IRS Pub. 510.