TAX FILE: Court hangs up on federal phone tax appeal

May 1, 2006
The 3% federal tax on long-distance phone service received another blow on March 30. That's when a three-judge panel of the U.S. Court of Appeals for the Sixth Circuit denied a government request to rehear its decision that the tax was invalid, in a case brought by OfficeMax. The panel reported that no judge of the appeals court had requested a vote on the suggestion that the full court rehear the

The 3% federal tax on long-distance phone service received another blow on March 30. That's when a three-judge panel of the U.S. Court of Appeals for the Sixth Circuit denied a government request to rehear its decision that the tax was invalid, in a case brought by OfficeMax. The panel reported that no judge of the appeals court had requested a vote on the suggestion that the full court rehear the case.

Earlier, after the original OfficeMax ruling and decisions by several other federal courts that the tax was invalid, Treasury Secretary John Snow said the government might stop fighting to retain the tax. He has not spoken about the issue since the latest ruling. Trucking businesses have more at stake than many companies, because the interstate nature of their work generates a large number of long-distance calls from employees and customers.

About the Author

KEN SIMONSON

Voice your opinion!

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

Sponsored Recommendations

What challenges are top of mind for fleet professionals in 2025? Get exclusive insights from the 2025 Fleet Trends Survey and discover where the industry is headed next.
The most successful fleets accomplish more than delivering freight. To accomplish this, fleets need a fuel that’s reliable, more economical and more sustainable. That fuel is ...
Are your KPIs driving real fleet improvement? Learn how to set smarter, data-driven benchmarks, track success like top-performing fleets, and apply proven strategies to optimize...
Learn how eets can enhance truck utilization and minimize safety incidents using business intelligence and AI. Delve into innovative practices, technology integration and real...