TAX FILE: So long to long-distance tax

July 1, 2006
After a succession of federal courts ruled that the 3% federal telephone tax does not apply to flat-rate long-distance services, the Treasury Dept. announced on May 25 that it would refund taxes collected in the past three years.

After a succession of federal courts ruled that the 3% federal telephone tax does not apply to flat-rate long-distance services, the Treasury Dept. announced on May 25 that it would refund taxes collected in the past three years. Bundled services, such as voice over Internet protocol (VOIP), that do not distinguish between local and long-distance calls, will also be eligible for refunds. However, purely local service will remain subject to federal tax unless Congress repeals the entire tax, as some members have suggested.

Treasury announced that it will publish a simplified refund procedure that taxpayers can use on the 2006 income tax returns that they file next year. Interest will be paid on refunds for taxes collected since February 28, 2003.

About the Author

KEN SIMONSON

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!