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Vonage According to the local newspaper the Feds will quit charging Excise tax on long
According to the local newspaper the Feds will quit charging Excise tax on long distance starting 1 July. Also you can file to have all federal excise tax refunded for the last few years in your next income tax return. This because of many lawsuits. It seems that the tax was originally conceived to fund the Spanish American War! It was never rescinded after the war... That's not illegal, just politics. The suits came because the tax is supposed to be levied on time X distance of the call. With modern calling plans that has been impossible to determine so a flat tax was placed on each line. That was the illegal part. I don't have the article at hand but I'm sure that someone out there can elaborate.
Edit Edit
Here is a passage I found dated May 25.
In wake of a recent unfavorable appeals court decision, the U.S. Treasury announced today the IRS is abandoning its attempts to collect the tax on long-distance calls. It plans to issue full refunds to taxpayers in 2007 who have improperly paid:
WASHINGTON, DC – The U.S. Treasury Department today announced it is conceding the legal dispute over the federal excise tax on long-distance telephone service. The Department of Justice will no longer pursue litigation and the Internal Revenue Service (IRS) will issue refunds of tax on long-distance service for the past three years. Taxpayers will be able to apply for refunds on their 2006 tax forms, to be filed in 2007.
Treasury Secretary John Snow states, "Today is a good day for American taxpayers; it marks the beginning of the end of an outdated, antiquated tax that has survived a century beyond its original purpose, and by now should have been ancient history.
"The Federal Appeals courts have spoken across the board. It's time to `disconnect' this tax and put it on the permanent `do not call' list.
"In addition to ending the litigation, I would like to call on Congress to terminate the remainder of this antique tax by repealing the excise tax on local service as well."
Read The Full Thread: How much has your Vonage bill gone up?
• Reading the thread on New Sales Tax Discussion , decided to go take a look at my bills
• You are right - the excise tax will be going away, and you will be able to get the taxes
• Residential Premium Unlimited Plan for 1-(813)-67X-XXXX (17/Apr-16/May)
• Premium Unlimited Plan for 1-(952)-xxx-xxxx (30/May-29/Jun)
• Im planning on downgrading to the 14.99 plan anyway..i use my mobile phone most
• My bill has gone UP again this month !
3rd straight time
This month I am now
• With all the "add on" taxes Vonage is becoming the closest to the old POTS business
• QWest adds on the same fees. Our local Cable company started their own VOIP service
• I left Qwest because I was paying $39.xx for a $29.99 plan. I joined Vonage at $27.24
OldSnipe posted "According to the local newspaper the Feds will quit charging Excise tax on long" on 05/27/2006 |
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