20060531 KDDC IRS Announces that the Spanish American War is Over

From Tax Prof blog:

Can You Hear Me Now? IRS to Refund $15 Billion of Telephone Taxes to Consumers

May 25, 2006: The Treasury Department and IRS announced this morning that after losing in five circuit courts of appeals, the Government is throwing in the towel and will no longer seek to enforce the 3% excise tax on long-distance telephone calls enacted during the Spanish-American War of 1898 as a "luxury" tax on wealthy Americans who owned telephones. The IRS will will issue $15 billion in refunds to consumers for long-distance telephone service taxes paid over the past three years:

• No immediate action is required by taxpayers.
• Refunds will be a part of 2006 tax returns filed in 2007.
• Refund claims will cover all excise tax paid on long-distance service over the last three years (time allowed given statute of limitations).
• Interest will be paid on refunds.
• The IRS is working on a simplified method for individuals to use to claim a refund on their 2006 tax returns.
• Refunds will not include tax paid on local telephone service, which was not involved in the litigation.

Treasury and IRS:

• Treasury Press Release (JS-4287)
• IRS Press Release (IR-2006-82)
• Notice 2006-50

Circuit Court Opinions:

• Am. Bankers Ins. Group v. United States, 408 F.3d 1328 (11th Cir. 2005)
• OfficeMax, Inc. v. United States, 428 F.3d 583 (6th Cir. 2005)
• Nat’l R.R. Passenger Corp. v. United States, 431 F.3d 374 (D.C. Cir. 2005)
• Fortis v. United States, 2006 U.S. App. LEXIS 10749 (2d Cir. Apr. 27, 2006)
• Reese Bros. v. United States, 2006 U.S. App. LEXIS 11468 (3d Cir. May 9, 2006)

Press reports:

• Associated Press
• Bloomberg
• Reuters

Listed below are links to weblogs that reference Can You Hear Me Now? IRS to Refund $15 Billion of Telephone Taxes to Consumers:

» Spanish-American War Now Over from It Shines For All
Or rather, the tax imposed to cover the war's costs has finally been lifted. The Treasury Department today announced (via TaxProf Blog)"it is conceding the legal dispute over the federal excise tax on long-distance telephone service. The Department of ... [Read More]

Tracked on May 25, 2006 1:49:03 PM

» Announcement: The Spanish-American War Is Over from Say Anything
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Tracked on May 25, 2006 2:30:35 PM

» The Spanish-American War Officially Ends! from Taxable Talk
And you thought that the Treaty of Paris (signed on December 10, 1898) ended the Spanish-American War. No! It ended today, ... [Read More]

Tracked on May 25, 2006 2:40:20 PM

» The Spanish-American War Officially Ends! from Taxable Talk
And you thought that the Treaty of Paris (signed on December 10, 1898) ended the Spanish-American War. No! It ended today, ... [Read More]

Tracked on May 25, 2006 3:41:38 PM

» IRS to Stop Collecting Telephone Tax from Tax Planning: U.S.
The Internal Revenue Service has agreed to stop collecting the federal excise tax assessed on long-distance telephone calls. The 3% federal excise tax has been the subject of numerous lawsuits, and the Treasury Department announced it has ordered the I... [Read More]

Tracked on May 25, 2006 5:47:49 PM

» FORGET THE MAINE! IRS THROWS IN TOWEL ON SPANISH AMERICAN WAR TELEPHONE EXCISE TAX from Roth & Company, P.C.
After a long series of court defeats, the Treasury today conceded defeat and will accept that the excise tax on... [Read More]

Tracked on May 25, 2006 8:25:46 PM

» A 108 year old "temporary tax" from respublica
The IRS lost in 5 circuit court of appeals and will now be refunding $15 billion to customers for the past 3 years of long distance telephone service. Back in 1898, yes, 1898, the government enacted a 3% excise tax [Read More]