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Links: ·ALL ·Review Your VoIP Provider ·VoIP Providers ·VoIP FAQ ·Porting Rules ·What Codec?
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caseydoug

join:2001-08-14
Seattle, WA
kudos:5

reply to vonsen

Re: [Lingo] Complain here about 18% in new fees/tax!!

Good letter, vonsen. I would like to offer just a slight clarification, however, regarding the 3% tax. This tax has nothing to do with the FCC. Pursuant to section 4251 of the Internal Revenue Code, there already exists a 3% federal excise tax on certain telecommunications services. These services are defined in IRC Sec. 4252, and to date, they have not included VoIP services. The IRS published an Advanced Notice of Proposed Rulemaking in July of last year seeking comment on how certain advanced telecommunications services might fit within this scheme. Comments were due last October, I believe. The next step will be for the IRS to publish proposed rules governing the interpretation of section 4252. After that notice and comment period has run, the IRS could begin applying the Federal Telecommunications Excise Tax to VoIP services.

This information is based on a quick review, with the caveat that I have not had an opportunity to research this thoroughly.


vonsen
Just Because
Premium
join:2005-01-06

Re: [Lingo] Complain here about 18% in new fees/ta

Caseydoug, I believe what you say is correct. But the key point (IMO) is that the tax has not yet been levied on VOIP services. It may be imminent, but I can't see it becoming retroactive - so what is Lingo doing collecting it at this point?

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