It was a great day for telecommunications consumers on Thursday as the U.S. Treasury Department announced that it is conceding an ongoing dispute over the legality of the Federal Excise Tax that most U.S. telecommunications consumers have paid for years as a part of their long distance and wireless phone bills.
The tax, typically calculated as 3% of local toll, intrastate, interstate, and international long distance call charges, has been in existence in various forms since the 1898 Spanish-American War, when it was instituted as a luxury tax on the rich.
Consumers will be able to apply on their 2006 tax returns for refunds for all Federal Excise taxes paid since February 28, 2003, including interest. The latest Federal Communications Commission (FCC) data on consumer expenditures on telecommunications services states that the average bill for long distance and wireless service was $51 per month, or $612 per year ($1,836 over a three-year period). As such, the typical American household may qualify for an additional $55.09 refund on their 2006 tax returns as a result of this action.
"Source: Telecommunications Research and Action Center.
http://tracweb.org/ct/ydzIYNS1uXWO/"
