FROM THE OFFICE OF PUBLIC AFFAIRS
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August 9, 2004
JS-1849
IRS Collection Policies Unaffected by Ongoing Litigation
IRS To Continue Collecting Communications Excise Taxes
Today the Treasury Department and the Internal Revenue Service issued Notice 2004-57, to inform taxpayers that the IRS will continue to collect the communications excise tax as it always has, notwithstanding ongoing and conflicting litigation.
Individuals and businesses paying for taxable communications services are required to pay the tax to their phone company together with their payment for the services. The phone companies then forward the taxes collected from their customers to the United States Treasury. Failure to pay the tax to the phone company may result in the imposition of penalties and interest. Taxpayers who believe, based on the ongoing litigation, that they do not owe the tax can preserve any rights they may have to a refund, without risking penalties and interest, by paying the tax to the phone company and filing a claim for refund with the IRS.
Current regulations require phone companies to report the failure of their customers to pay the telephone excise tax, but the regulations do not provide a date by which the report is due. Proposed and temporary regulations are being issued today that provide that date.
REPORTS