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Letter to Telephone Companies

July 11, 2005

To Whom It May Concern,

We have received notification that several telecommunication system providers have been invoicing the University of Massachusetts for Massachusetts Sales Tax and Federal Excise Tax. Please be aware of the following:

Federal Excise Tax on Telecommunication Services. The University of Massachusetts qualifies for an exemption from the federal excise tax on telecommunication services used exclusively for University business. Nonprofit educational institutions are exempt under Internal Revenue Code Section 4253(j) and state government is exempt under IRC Section 4253(i). Since the University of Massachusetts is a state university, the University is exempt under either code section. In order to claim an exemption under subsection (i) or (j), an exemption certificate should be filed with the provider of the telecommunication services. According to I.R.C. Section 4253 (k), any form of signed statement certifying that the organization is entitled to such an exemption is acceptable. Therefore, this letter constitutes the University of Massachusetts, Amherst, exemption certificate and the University should no longer be billed for Federal Excise Tax.

Massachusetts Sales Tax on Telecommunication Services. The University of Massachusetts is exempt from sales or use tax on property or services used in furthering the University's exempt purpose. Form ST-2, "Certificate of Exemption," and Form ST-5, "Sales Tax Exempt Purchaser Certificate" are not required of government agencies, but can be sent to vendors requesting proof that the University is exempt from sales or use tax. Copies of the Form ST-2 and Form ST-5 are attached. From this point forward, any invoices from a telecommunication service provider that request payment on sales or use tax will not be paid for the amounts requested.

We are also requesting any provider who has charged the University for the Massachusetts sales tax or use tax in the past, please refund by credit on your next invoice to the university department charged, and provide a document to me on a monthly basis as to accounts that are credited. For a listing of the University of Massachusetts accounts for your telephone company, we would suggest that you speak with your sales representative first.

Should you have any questions or need further evidence of our exemption, please do not hesitate to contact Wendi Warger, Assistant A/P and Travel Manager at 413/545-4710.


Andrew P. Mangels



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