Senator George Allen to Request Federal Excise Taxes on Telephone Services not Apply to Internet Communications.

A recent article by Stephen K. Cooper of the CCH News Staff noted that Senator George Allen (R) of Virginia introduced legislation to prohibit federal excise taxes imposed upon telephone services from applying to internet communications. Such internet communication services are email, internet videoconferencing, data transfers, and internet telephony. Allen cited a report by the Joint Committee on Taxation, Options to Improve Tax Compliance and Reform Tax Expenditures, as his prompt to introduce such legislation. The report suggested that the government extend excise taxes to such internet communication services. No further action has been taken on this bill. (Article by Stephen K. Cooper, CCH News Staff, April 12, 2005 and JCS-2-05, Options to Improve Tax Compliance and Reform Tax Expenditures, January 28, 2005)

Posted on December 6, 2005