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CLASS ACTION
I.R.S. Telephone Excise Tax
Chimicles & Tikellis LLP recently filed a Complaint in the United States District Court for the District of Columbia challenging actions taken by the Internal Revenue Service ("I.R.S.") in connection with its administration of the communications excise tax. The communications excise tax is a 3% tax applicable, by its terms, to telecommunications services that are charged based both on distance and elapsed time. According to the allegations in the Complaint, however, the I.R.S. has improperly collected and continues to improperly collect the communications excise tax from phone customers that are billed only based on the elapsed time of each call. The Complaint alleges that numerous federal courts – including five circuit courts of appeal – have held that this application of the tax is improper and contrary to the plain terms of the tax code. The Complaint refers to estimates that, over the past three years alone, approximately $9 billion has been wrongfully collected by the I.R.S. based on its improper interpretation of this statute and now is subject to refund.
The Complaint seeks the return of monies improperly collected by the I.R.S. on behalf of those taxpayers whose refunds are so small that pursuing an individual refund in the manner presently required is economically unfeasible. In addition, the Complaint requests injunctive, declaratory, and related equitable relief directing the I.R.S. to abide by the decisions of the federal courts and to immediately stop collecting the improper tax.
DOCUMENTS
Read the Amended Complaint
Editorial Connects Class Action Against I.R.S. to Change in Position by Treasury Department
CONTACT
Nicholas E. Chimicles (Nick@chimicles.com)
Benjamin F. Johns (BenJohns@chimicles.com)
Telephone (610) 642-8500.
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