Tax settlement favors AT&T mobile internet service subscribers
With income taxes plaguing so many U.S. consumers, it isn’t very often they see a reimbursement for taxes paid on a service, but a class action lawsuit filed against AT&T is requiring the mobile provider to pony up nearly $1 billion in paid taxes to its subscribers as part of a settlement.
With income taxes plaguing so many U.S. consumers, it isn’t very often they see a reimbursement for taxes paid on a service, but a class action lawsuit filed against AT&T is requiring the mobile provider to pony up nearly $1 billion in paid taxes to its subscribers as part of a settlement.
The suit alleges that AT&T unjustly taxed subscribers of its mobile Internet service which is in direct violation of the internet Tax Freedom Act which prohibits the taxing of Internet access.
The settlement, estimated at $956 million, will cover AT&T Mobility customers who were taxed for internet service between November 1, 2005 and September 7, 2010. According to a judge in the U.S. District Court for the Northern District of Illinois, about 32 million people are included in the settlement.
AT&T has agreed to the settlement despite its claim of innocence. "While we strongly deny any wrongdoing, and no court has found that AT&T Mobility committed any wrongdoing, we agreed to settle these cases to avoid the burden and cost of further litigation,” said Marty Richter, AT&T spokesman.
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