Why Do We Pay Tax On A Cancellation (CX) Fee? We have to charge tax for the Cancellation Fee because it was issued for a service. (It’s just one of those laws we have to abide by.) To learn more about tax laws, go to: www.irs.gov/uac/Tax-Law-Questions www.blt.ly/1CQ5TGW Have more questions? Submit a request 0 Comments Please sign in to leave a comment.