Tax News

CCH (cch.taxgroup.com) reports:

  The Court of Federal Claims lacked subject matter jurisdiction over a corporation's claim for refund of communications excise tax under
Code Sec. 4251 because the claim was filed 10 years after the date the corporation paid the tax and was, therefore, untimely under Code Sec. 6511(a). The corporation's argument that neither Code Sec. 6511 nor any other statute of limitations applied to its claim because it was not required to file a return with respect to the tax at issue was rejected. Code Sec. 6511 applied even though the communications service provider collected the tax and paid it over to the IRS.

  Further, Code Secs. 6511 and 7422 could not be interpreted as effecting a discriminatory exemption of excise tax claims from the limitations requirement for refund claims without any rational basis. The communications excise tax was within Code Sec. 7422's "all-inclusive" term governing the recovery of "any" wrongfully assessed or collected tax.

  CCH Comment. In Notice 2006-50, I.R.B. 2006-25, 1141, the IRS instructed carriers to cease collecting and paying over communications excise taxes paid by consumers on time-only long distance service billed after July 31, 2006. However, while it did authorize taxpayers to request a credit or refund on their 2006 income tax returns, these returns were limited to excise taxes paid on services billed after February 28, 2003, and before August 1, 2006.

Radioshack Corporation, FedCl, 2008-1 USTC ¶50,357

Radioshack Corporation, FedCl, 2008-1 USTC ¶70,278

Other References:

 
Code Sec. 4251

  CCH Reference - ETR ¶18,135.04

  CCH Reference - ETR ¶18,135.68

 
Code Sec. 6511

  CCH Reference - 2008FED ¶39,080.125

  CCH Reference - ETR ¶50,435.01

  CCH Reference - ETR ¶50,435.08

 
Code Sec. 7422

  CCH Reference - 2008FED ¶41,688.504

  CCH Reference - ETR ¶57,475.01

  CCH Reference - ETR ¶57,475.10

  Tax Research Consultant

  CCH Reference - TRC IRS: 36,052.05
CCH Reference -
TRC LITIG: 9,056
CCH Reference - TRC EXCISE: 9,056