Let’s travel back in history for a moment.  In 2006 the IRS issued Notice 2006-50, conceding liability with respect to the federal telecom excise tax and directing telecommunications carriers to cease the collection of federal excise taxes related to long distance and bundled services.

This action effectively repealed the tax for all but “local-only service” as defined in IRS Notice 2006-50. Treasury Secretary John W. Snow had this to say about the development, “Today is a good day for American taxpayers; it marks the beginning of the end of an outdated, antiquated tax that has survived a century beyond its original purpose, and by now should have been ancient history.” Snow also called on the United States Congress “to terminate the remainder of this antique tax by repealing the excise tax on local service as well.”

Here at C&I Tax Consultants, I want you to know that along with obtaining substantial benefits for clients through California Enterprise Zone and Federal Empowerment Zone tax credits and deductions, we can also realize additional tax savings by recovering telecommunications excise taxes.

“C&I’s top priority is to reduce our clients’ tax burden while increasing their cash flow, and our expertise in federal telecommunications excise taxes will mean even greater savings for our clients in the future,” said Steven Dotan, chief executive officer of C&I.  “In this increasingly challenging economy, businesses large and small are looking to save money wherever they can.  We’re pleased to contribute to our clients’ fiscal health by obtaining every credit, deduction or other incentive that’s available to them.”

In the current economic environment, this information could be vital to your business and allow for sizable tax deductions.  To find out more on how to take full advantage of this news, contact us directly for a free consultation.