TAX FILE: Phone home, tax-free

Amtrak recently won a federal telephone tax refund in a case that may help many motor carriers. The U.S. District Court for the District of Columbia ruled September 20th that Amtrak was entitled to a refund because the law exempts common carriers from the 3% federal tax on toll service that does not vary with distance. Specifically, Amtrak is exempt on its domestic inbound toll-free dedicated service,

Amtrak recently won a federal telephone tax refund in a case that may help many motor carriers. The U.S. District Court for the District of Columbia ruled September 20th that Amtrak was entitled to a refund because the law exempts common carriers from the 3% federal tax on toll service that does not vary with distance. Specifically, Amtrak is exempt on its domestic inbound toll-free dedicated service, Canada inbound toll-free service, domestic inbound “switched” or “ready-line” service, and virtual network service. Many trucking fleets have one or more of these services, and thus may likewise qualify for the exemption for common carriers.

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