How Would You Like To Receive A Refund On Your Federal Excise, State And Local Taxes On Your Phone Bill?

If your company spends more than $10,000 per month on your telecommunications bill, you need to continue reading.

As you know, these small percentage of taxes can add up to very large amounts on your bill over the course of the year.

Due to some recent court cases, (Office Max, American Bankers, AOL to just name a few of the companies to win their court cases) you are now eligible to receive a refund on these taxes.

Refund Calculation

To estimate your potential refund, consider the following example:

Based on 3% tax rate, you will pay $30,000.00 in federal excise taxes, annually, for every $1,000,000 your firm spends on communications services.

Based on a Statute of Limitations of 3 years, your potential refund will be 3 times this amount or approximately $90,000 per $1,000,000 in annual communications services expenditure.

We offer a turn key solution:

Network Brokers will perform the following services:

  • Review all relevant telecommunications services to identify refund opportunities at the Federal, State, and Local levels
  • File the necessary refund claims with the appropriate taxing authorities for all periods that are open based on the respective Statue of Limitations for each unique type of refund
  • Provide the appropriate documentation to justify the claim
  • Interact with the respective taxing agencies to procure refunds

We require a very limited amount of your company’s resources to perform our services. Once we have copies of your telecommunications billing records, we can perform all of our services independent of your facilities and personnel.

Comprehensive Approach:

You will benefit from our strategic partnership with the leading consulting and law firms who handle these cases before the federal courts.

Our partnership is uniquely positioned to help your company pursue a comprehensive tax refund on your telecommunications services.

There are very few firms in the United States that have expertise in both Federal and State telecommunications tax refunds. Although much attention has been paid to the Federal Excise Tax issue, due to the various Federal court cases that are challenging Section 4252(b)(1) of the Internal Revenue Code, the opportunity to receive state tax refunds should not be overlooked.

Normally, state tax refunds are significantly more attractive than federal refunds because state tax rates are 2-3 times higher than the federal tax rate. In addition, since the state tax exemptions are not being disputed in court, the potential for a refund is significantly higher and more immediate.

Federal Excise Tax Refunds:

Section 4251(a)(1) of the Internal Revenue Code imposes a 3% tax on the following three communications services: (1) Local Telephone Service; (2) Toll Telephone Service; and (3) Teletypewriter Exchange Service.

Currently, three law firms, representing eight cases in Federal court, are challenging the application of this statue as it applies to Toll Services. As of today, there have been seven court decisions in favor of the Plaintiffs.

Our partners are in close communication with two of the three law firms that are litigating these cases, and have a high degree of confidence that, in the end, companies will receive a full Federal Excise Tax refund.

They currently represent over 50 of the Fortune 1000 firms and hundreds of additional firms. Their clients include companies such as: Big Lots, British Petroleum, Borders, CompUSA, IKON Office Solutions, Intuit, Johnson Controls, Pep Boys, Pier 1 Imports, and Radio Shack.

State and Local Tax Refunds:

The State and Local tax statutes relating to telecommunications services and equipment are complex, obscure, and vary significantly throughout the 50 states. As mentioned earlier, typically these rates are much higher than the 3% Federal Excise Tax rate.

For example, the city of Schaumburg, IL assesses a tax rate of 21% on toll telecommunications services. There are many companies that specialize in either telecom or tax work, but very few companies that specialize in both disciplines. By marrying these two disciplines, we can provide your company a unique opportunity to pursue tax refunds that are normally not addressed.

There are many other exemptions that your company could qualify for that are too long to list here. Many of these additional refunds will vary from state to state and like the federal, state and local refunds, they can be quite large.

We look forward to having the opportunity to assist you and your business on this project. I have attached a few court cases for your review.

Please give me a call at your convenience to discuss how you would like to proceed.


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