June 28, 2006
IRS Will Refund $15 Billion to Taxpayers for Illegally Taxing Long Distance Services
Have you heard about this? The IRS is set to refund $15 billion (estimated) to taxpayers for illegally taxing long distance services. The "telegraph tax," an excise tax on long-distance services, was a "hold-over" from the Spanish-American War 108 years ago. Shortly after the Spanish-American War, the telegraph tax was extended to taxes on long distance services.
The IRS ignored 11 previous court decisions (including one from the U.S. Court of Appeals Eleventh Circuit Court), stating that this tax was illegal. Finally, with the advent of 12th court ruling, they acquiesed.
Even though people have been forced to pay taxes on long distance services for many years, the IRS will only issue refunds on taxes paid during the last three years. According the the IRS, taxpayers will be eligible to file for refunds of all excise tax they have paid on long-distance service billed to them after Feb. 28, 2003, and interest will be paid on these refunds. Make sure you claim your refund!
More from U.S. Treasury Secretary John Snow…
Today is a good day for American taxpayers; it marks the beginning of the end of an outdated, antiquated tax that has survived a century beyond its original purpose, and by now should have been ancient history.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."





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