July 11, 2006 10:00 ET

INI Acts Quickly to Claim Significant Phone Tax Refunds for Clients

MADISON, WI -- (MARKET WIRE) -- July 11, 2006 -- A recent U.S. Treasury ruling that eliminates certain federal excise taxes on telephone service and that has opened the door to three-year refunds of those taxes came on the heels of a precedent-setting court decision that let some businesses file claims for billing periods as early as five years prior to the Treasury ruling.

INI Global, of Madison, Wis., quickly responded to that court decision, working with large business clients to file claims for significant refunds of the excise taxes paid over that extended period.

Now that the U.S. Treasury has issued the ruling for long distance and cellular vendors to discontinue charging the excise tax on usage-based services, the INI Global clients will receive the refund for taxes from March 2003 through July 2006 in addition to the refund for months prior to March 2003 that were included in earlier claims that INI Global assisted in preparing.

One such INI Global client, a multi-billion dollar energy company, filed a claim in the amount of $330,000 for federal excise tax amounts paid from July 2001 through June 2004. That amount was based on calculations made by INI Global after reviewing 36 months of electronic and paper invoices paid by the energy company during those billing periods. Based on the related Treasury ruling, the energy company will also be entitled to a refund from July 2004 through July 2006, estimated to be an additional $229,000, for a total of $559,000 in refunds.

INI Global calculated that federal excise tax refund amount after reviewing more than 100 invoices and separating the usage-based services from taxes paid on flat-rated services.

After submitting the claim, INI Global also worked with the IRS to make sure it had the documentation necessary to validate the claim.

The effort required to gather invoices and perform such an analysis led INI Global to develop enhanced technology to further facilitate the process. With the development of that technology and the experience INI Global has gained in preparing the federal excise tax claims, the company is poised to assist large corporations in gathering invoice information, calculating accurate tax claims and providing the necessary documentation required by the IRS to validate the requested refunds.

Corporations must file for the tax refund on their 2006 tax returns and have substantiating documentation in order to be eligible to receive the requested refund amounts.

INI Global has been helping corporations across North America with management of telecommunications expenses since its founding in 1991.

Contact Information

  • Contact:
    R.W. (Bob) Makowski
    INI Global