Telecom Excise Tax Challenges

Analysis Group provided analysis for the Department of Justice in a series of cases arising from plaintiff assertions that they were not subject to federal telecom excise tax on their long-distance bills. The plaintiffs’ novel claim was that they were not subject to the tax because their bills were not based on “time and distance” as the federal law states. Our analysis demonstrated that Congress had intended that the excise tax should apply to long-distance voice communications.