The End of the Phone Excise Tax

Thanks for sharing this!

What would you call a temporary tax that has existed for one hundred and seven years? For many, words like outrageous, outdated or totally ridiculous come to mind.

Those words may be what five Federal Appeals Courts finally heard when they agreed the government should stop collecting the long distance telephone tax.

The tax on long distance telephone service, imposed in 1898 to fund the Spanish American war, was never repealed when the war ended less than six months later. Though many bills have been presented in Congress to abolish the levy, none was able to accomplish that purpose. Over the past decade the tax has remained at three percent, but during the Vietnam War it climbed as high as ten percent.

Some members of Congress were still supporting the tariff when the courts ruled against it and the Treasury Department decided not to pursue further litigation.

Businesses and individual taxpayers will now be eligible for refunds, with interest, for excise taxes paid on long distance telephone taxes over the last three years. Other fees and taxes on telephone bills are still in effect and are not a part of the court decision.

At present refund procedures are incomplete, but taxpayers will most likely be able to file a claim on 2006 income tax returns.

You might also like these posts

Article – Preparing for Hurricane Season Image source: By Nilfanion , via Wikimedia Commons. The map shows the tracks of all tropical cyclones which formed worldwide from 1985 to 2005.The Atlantic hurricane season begins June 1. While the 2014 season is expected to be a mild one, mild doesn’t mean storm-free. Getting ready early is a good idea—and early preparati...
Article — Locked Out Image source: UK, public domain, via Wikimedia Commons What’s on your computer? Your manuscripts? Work? Photos? What would you do if you were denied access to those files—if you were locked out by rogue hackers? If you’re shaking your head because you think nothing on your computer is of value to hackers, consider th...
Article — Tax Identity Theft Awareness Week Image source: ftc.gov Taxes are scary enough, without adding tax identity theft to the mix. The costs—$3.6 billion a year according to an estimate by the US Treasury Inspector General for Tax Administration—are scary, too. Unfortunately, both tax ID theft and the costs are on the rise. The US Federal Trade Commission...
Article — Your 2013 Federal Income Tax Return Image source: IRS.gov Whether you’re a part- or full-time freelancer, receiving income means filing a tax return. Here are three things to keep in mind as you look back at your 2013 business activity. Dates: The IRS will begin accepting 2013 business returns on Monday, January 13, 2014. For individual returns, the da...

We write. Visit us in Carpenter Country, a magical place that, like our stories, is unreal but not untrue.

Posted in Articles Tagged with: ,