Free Joint Status Report - District Court of Federal Claims - federal

Case 1:05-cv-00501-RHH

Document 17

Filed 11/28/2006

Page 1 of 2

IN THE UNITED STATES COURT OF FEDERAL CLAIMS ______________ No. 05-501 T (JUDGE HODGES) SOUTHERN NEW JERSEY INTERNET PROVIDER, Plaintiff, v. THE UNITED STATES, Defendant. ______________ JOINT STATUS REPORT ______________ Pursuant to the Court's Order dated August 8, 2006, the parties submit the following information: A decision was issued in USA Choice Internet Services, Inc. v. United States, Fed. Cl. No. 05-525T (2005), on November 15, 2006. Judge Lettow awarded the Plaintiff judgment insofar as it paid communications excise taxes from January 1999, through April 2002, on incoming-only PRI channels purchased from ALLTEL and Verizon and its predecessors and on private-communication DCS and BRA channels obtained from ALLTEL plus the private lines associated with specific telephone numbers. Judge Lettow held that charges for these channels and services are not taxable as local telephone service, in the first instance because the services are not covered by the definition of such service in the Internal Revenue Code, and in the second instance because the services are exempted from the definition. Judge Lettow has further ordered the parties to confer to resolve the specific amount of the refund due on or before December 10, 2006. -1-

Case 1:05-cv-00501-RHH

Document 17

Filed 11/28/2006

Page 2 of 2

The effect of the decision in USA Choice on the above-captioned case cannot be determined at this juncture, as decisions in XO Communications v. United States, Fed. Cl. No. 03-2745T (2005), and Comcation, Inc. v. United States, Fed. Cl. No. 05-515T (2005), have not yet been issued. This case should continue to be suspended pending the final outcome of XO Communications and Comcation. Respectfully submitted, November 28, 2006 Date s/Anthony C. Gulotta Anthony C. Gulotta, Esquire Anderson & Gulotta, P.C. 1110 North Mountain Road Harrisburg, PA 17112 (717) 635-7145 Attorney for Plaintiff November 28, 2006 Date s/G. Robson Stewart G. ROBSON STEWART Attorney of Record U.S. Department of Justice Tax Division Court of Federal Claims Section Post Office Box 26 Ben Franklin Post Office Washington, D.C. 20044 (202) 307-6493 EILEEN J. O'CONNOR Assistant Attorney General DAVID GUSTAFSON Chief, Court of Federal Claims Section STEVEN I. FRAHM Assistant Chief November 28, 2006 Date s/Steven I. Frahm Of Counsel Attorneys for Defendant

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