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| reply to nsumner
Re: [Lingo] Complain here about 18% in new fees/tax!! said by nsumner:If a VOIP provider chooses not to charge this fee (or submit it to the government), and the courts say that VOIP is required to pay the FET then it may well be retro-active. I'm not an expert, but I do know a few things about taxes. First, courts are not the ones to decide if it is retroactive. *When* the law is written to include VoIP service (there is no such law at this time!) that is when it will be decided if it is retroactive or not.
HOWEVER...I cannot recal, ever, ANY tax law being established, and it being made retroactive. This notion is ridiculous. It is like saying "OK, we made a law today requiring you to collect these taxes, but we really meant to apply it to you 4 months ago, so why don't you go ahead and pay us what you owe."
If anyone can find a tax law that was made retroactive, it could change everything. Otherwise, I'm highly suspicious of what Lingo will be doing with these additional funds they will be collecting. | |
| said by Gericurlswrl: *When* the law is written to include VoIP service (there is no such law at this time!) that is when it will be decided if it is retroactive or not. HOWEVER...I cannot recal, ever, ANY tax law being established, and it being made retroactive. It's not that simple. Section 4251 of the Internal Revenue Code imposes a 3% tax on "communications services." This provision has been in place in one form or another for over 100 years -- since the Spanish American War. "Communications services" includes "local telephone service" and "toll telephone service." "Local telephone service" is defined in section 4252 as:
"(1) the access to a local telephone system, and the privilege of telephonic quality communication with substantially all persons having telephone or radio telephone stations constituting a part of such local telephone system, and
(2) any facility or service provided in connection with a service described in paragraph (1). "
A reasonable argument could certainly be made that, by connecting its customers to the local telephone system, Lingo is providing communications services within the meaning of section 4252. Section 4252 was enacted in 1965, and therefore the IRS could claim Lingo should have been collecting this tax from the time it first sold VoIP service.
There are, of course, lots of arguments against the applicability of this tax to VoIP service, and against any obligation of Lingo to collect it. But it would not necessarily be retroactive to charge Lingo with this responsibility now.
Finally, I should add that there are many instances in which tax laws have in fact been adopted which apply retroactively. Usually these are given wide publicity before their final passage (to give people a chance to adjust their affairs accordingly), but unlike criminal statutes, there is no constitutional bar to retroactive taxation. | |
| (in response that; you have to pay tax for communication that connects to a pots network)
who has to pay the taxes the subscriber or the VoIP provider?
pots you have phone service from your bell. (a bell you have a wire that is connected from your home to then bells phone switch) wear as is a communication service like email. VoIP you pay communication tax to your isp after that every communication service is like email or IM that is tax free.
in short i pay a VoIP provider for service like you can pay for AOL fore there LAN connection service then the VoIP like Vonage should pays level3 to connect to the post network so level3 should pay the tax. | |
| said by Enonymous:
(in response that; you have to pay tax for communication that connects to a pots network)
who has to pay the taxes the subscriber or the VoIP provider?
pots you have phone service from your bell. (a bell you have a wire that is connected from your home to then bells phone switch) wear as is a communication service like email. VoIP you pay communication tax to your isp after that every communication service is like email or IM that is tax free.
in short i pay a VoIP provider for service like you can pay for AOL fore there LAN connection service then the VoIP like Vonage should pays level3 to connect to the post network so level3 should pay the tax.
Enonymous, I don't quite understand what you are saying. If the federal communications excise tax applies to VoIP, then the subscriber has the responsibility to pay it and the VoIP provider has the responsibility to collect it. I don't happen to pay any taxes in connection with my internet service, but it wouldn't matter even if I did. Nor would it matter what taxes are paid by Lingo or Level3. The IRS could claim the tax applies to the service I purchase from Lingo because Lingo provides me with "access to a local telephone system, and the privilege of telephonic quality communication with substantially all persons having telephone or radio telephone stations constitution a part of such local telephone system." | |
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