Telephone 'Luxury' Tax Now Discontinued

The Treasury Department has, for many, many years, been charging a tax on telephone calls. They have been sued many times for it, amd I guess the decision finally came down to not only quit charging it or trying to collect it, but also to allow the essence of a 'class action' lawsuit so that people who have paid that tax over the years can apply for a refund. I think the way this will work is there will be a line on your tax form next year allowing you to deduct as a credit whatever had been paid on the telephone tax. I believe this tax began during the Spanish American War, and like so many government things, it just stayed on forever for at least a century.

Talk to your tax people about the particulars of how to apply for a refund, etc.

Patrick Townson

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