§ 49.4253-3. Exemption for certain organizations.
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/us/cfr/t26/s§ 49.4253-3·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)The American National Red Cross. The taxes imposed by section 4251 do not apply to amounts paid for services furnished to the American National Red Cross.
(b)International organizations. The taxes imposed by section 4251 do not apply to amounts paid for services furnished to an international organization. See section 7701(a)
(18)for the definition of “international organization”. An international organization is designated as such by the President of the United States through an Executive order or orders. When an organization has been designated by the President as entitled to enjoy the privileges, exemptions, and immunities conferred by the International Organizations Immunities Act, or part thereof, including exemption from tax, the exemption applies to the taxes imposed by section 4251 on amounts paid for services unless the President otherwise provides. The exemptions is subject to withdrawal or revocation by the President. In case of withdrawal or revocation, unless otherwise provided by the President, the exemption is inapplicable to payments made on or after the date of issuance of the order of withdrawal or the date of revocation.
(c)Exemption certificate.
(1)No exemption certificate is required under this section where the payment for the services furnished is made by the American National Red Cross direct to the person furnishing the services. In all other cases the right to exemption under section 4253(c) shall be evidenced by properly executed exemption certificates in substantially the following form: Exemption of Certificate
(Date)__________________________ 19____ I certify that ______________________ (Name of service) have been furnished by (Telephone, telegraph company, etc.) to ____________________ (International Organization, etc.); that the charges of $______ will be paid from ____________________ (International Organization, etc.) funds; and that the charges are exempt from tax under section 4253(c) of the Internal Revenue Code. (Signature of officer or employee) (Address) (Title) Note: Penalty for fraudulent use, $10,000 or imprisonment or both.