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ProfitLine Helps Clients Obtain Sizable Federal Excise Tax Refunds
Wednesday, November 17, 2004 — ProfitLine, the premier provider of telecom expense management services, today announced it will help its Fortune 1000 clients recover money they could be owed by the Internal Revenue Service.
Under the law, a 3% Federal Excise Tax (FET) is assessed on telecom toll charges. The tax applies only to calls whose prices vary by time and distance. But since hardly any interstate calls vary by distance today—a call from Los Angeles to San Diego costs the same as a call from Dallas to San Diego—a number of large corporations are disputing whether FET still applies, and their telecom managers are filing claims for recovery of FET overpayment with the IRS.
There are two potential scenarios that may make a company eligible for FET Recovery. First, the charges that no longer fall within the Internal Revenue Code's time and distance definition of "toll" services may be excluded from FET assessment. Second, FET could be excluded on virtual private network services.
Recently, federal courts have ruled in favor of full refunds of the federal excise tax for corporations, judging that the telecommunications services covered by postalized rates were not both usage-sensitive and distance-sensitive as required by law. The IRS continues to fight this, and will no longer settle partial payments on claims. Companies now need legal representation to secure a refund.
"The IRS is making companies jump through hoops to try to get FET refunds. The window of opportunity is open right now, but the IRS is starting to tighten its refund requirements," said C. Kristine White, attorney at law and FET specialist. "We are urging companies to file as quickly as possible or risk losing millions of dollars in recoveries from the government. Firms like ProfitLine are in the perfect position to help large enterprises collect and present the right data to the IRS to ensure a maximum credit for this unfair tax."
ProfitLine's tax experts analyze the statute of limitations requirements and file refunds for the recovery of FET overpayments. When appropriate, ProfitLine also files for exemptions from annual payment of future FET. By making claims that go back three years, companies could realize a sizable refund.
Because of the three-year (36 month) statute of limitations on refund claims, filing a claim as soon as possible maximizes the size of the potential refund. "ProfitLine will put a recovery plan in place and cut through the IRS red tape to protect your right to a refund," said Rick Valencia, chairman and chief executive officer. "We believe that disputes could result in 100% FET refunds for companies who file immediately. Our legal experts will guide you through the claim process and do all of the filing and legal legwork for you. All that's left for you to do is sit back and wait for that big refund check!"
About ProfitLine
ProfitLine's outsourced solution streamlines telecom expense management for Fortune 1000 companies. By combining a best practices approach with proven technology, clients can easily manage the entire lifecycle process through ProfitLine's intelligent, scalable Web application, MyTelcoManager, which provides unmatched functionality and ease of use. With a laser focus on containing and driving down telecom costs, ProfitLine's team of seasoned telecom experts increases telecom savings and reduces hassles for the company's prestigious client base. For more information about ProfitLine, please contact Kara Busselen at 858.202.1229 or visit
www.profitline.com.
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NOTE: ProfitLine is a registered trademark of ProfitLine, Inc. MyTelcoManager is a trademark of ProfitLine. All other trademarks or registered trademarks belong to their respective owners.
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Wednesday, November 17, 2004 — ProfitLine, the premier provider of telecom expense management services, today announced it will help its Fortune 1000 clients recover money they could be owed by the Internal Revenue Service.
Under the law, a 3% Federal Excise Tax (FET) is assessed on telecom toll charges. The tax applies only to calls whose prices vary by time and distance. But since hardly any interstate calls vary by distance today—a call from Los Angeles to San Diego costs the same as a call from Dallas to San Diego—a number of large corporations are disputing whether FET still applies, and their telecom managers are filing claims for recovery of FET overpayment with the IRS.
There are two potential scenarios that may make a company eligible for FET Recovery. First, the charges that no longer fall within the Internal Revenue Code's time and distance definition of "toll" services may be excluded from FET assessment. Second, FET could be excluded on virtual private network services.
Recently, federal courts have ruled in favor of full refunds of the federal excise tax for corporations, judging that the telecommunications services covered by postalized rates were not both usage-sensitive and distance-sensitive as required by law. The IRS continues to fight this, and will no longer settle partial payments on claims. Companies now need legal representation to secure a refund.
"The IRS is making companies jump through hoops to try to get FET refunds. The window of opportunity is open right now, but the IRS is starting to tighten its refund requirements," said C. Kristine White, attorney at law and FET specialist. "We are urging companies to file as quickly as possible or risk losing millions of dollars in recoveries from the government. Firms like ProfitLine are in the perfect position to help large enterprises collect and present the right data to the IRS to ensure a maximum credit for this unfair tax."
ProfitLine's tax experts analyze the statute of limitations requirements and file refunds for the recovery of FET overpayments. When appropriate, ProfitLine also files for exemptions from annual payment of future FET. By making claims that go back three years, companies could realize a sizable refund.
Because of the three-year (36 month) statute of limitations on refund claims, filing a claim as soon as possible maximizes the size of the potential refund. "ProfitLine will put a recovery plan in place and cut through the IRS red tape to protect your right to a refund," said Rick Valencia, chairman and chief executive officer. "We believe that disputes could result in 100% FET refunds for companies who file immediately. Our legal experts will guide you through the claim process and do all of the filing and legal legwork for you. All that's left for you to do is sit back and wait for that big refund check!"
About ProfitLine
ProfitLine's outsourced solution streamlines telecom expense management for Fortune 1000 companies. By combining a best practices approach with proven technology, clients can easily manage the entire lifecycle process through ProfitLine's intelligent, scalable Web application, MyTelcoManager, which provides unmatched functionality and ease of use. With a laser focus on containing and driving down telecom costs, ProfitLine's team of seasoned telecom experts increases telecom savings and reduces hassles for the company's prestigious client base. For more information about ProfitLine, please contact Kara Busselen at 858.202.1229 or visit
www.profitline.com.
###
NOTE: ProfitLine is a registered trademark of ProfitLine, Inc. MyTelcoManager is a trademark of ProfitLine. All other trademarks or registered trademarks belong to their respective owners.
Return to the List of Archived Press Releases.
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