- Carriers must retain specific sales records for prepaid telephone cards sold to other carriers to avoid tax collection responsibility.
- The IRS is extending an existing OMB-approved collection (No. 1545-1628) with no changes to rules or estimated burden.
- Written comments on the collection's necessity, accuracy, and burden must be submitted by December 28, 2026.
What Changed
On October 27, 2026, the Internal Revenue Service published a notice inviting public comments on the information collection requirements related to the communications excise tax on prepaid telephone cards. This is a routine extension of a currently approved collection under OMB Control Number 1545-1628, with no changes to the underlying regulations or estimated taxpayer burden.
Practical Effect on Businesses
Businesses or other for-profit carriers that sell prepaid telephone cards must keep certain documentation of sales made to other carriers. This recordkeeping helps them avoid being responsible for collecting the excise tax on those transactions.
The IRS estimates there will be 96 responses annually, with each taking about 20 minutes, for a total estimated burden of 34 hours. The rules stem from regulations in TD 8855 that outline how the communications excise tax applies to prepaid telephone cards.
How to Submit Comments
Interested parties should send written comments by December 28, 2026, to ensure they are considered. Comments can be mailed to Andres Garcia at the IRS address in Washington, DC, or emailed to [email protected], including OMB Control No. 1545-1628 in the subject line.
The IRS welcomes feedback on whether the collection is necessary, the accuracy of its burden estimates, ways to improve the information collected, methods to reduce burden, and any related costs.
Additional Information
This notice follows standard procedures under the Paperwork Reduction Act of 1995. All comments will be summarized, become part of the public record, and be viewable on relevant websites. Individuals should avoid including confidential personal information in their submissions.
For more details or copies of the collection, contact LaNita Van Dyke at 202-317-6009. The notice was dated October 23, 2026, and appeared in the Federal Register on October 27, 2026.
Questions for Tax Professionals
Businesses involved in selling prepaid telephone cards may want to review how these recordkeeping rules affect their operations and whether current practices meet IRS expectations. Questions about applicability to specific transactions or record formats should be directed to a qualified tax advisor.
Republic Tax Relief offers a free, no-obligation initial consultation for individuals and businesses facing separate IRS or state tax issues. Readers with existing tax-debt questions unrelated to this excise tax collection can contact the firm to discuss the suitability, scope, fees, and availability of private tax-resolution services.
Announcement covered: Oct 27, 2026.
General information only, not individual tax, legal, or financial advice. Rules, deadlines, and eligibility depend on your circumstances. Check current official guidance or consult a qualified professional.
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