"John H. Fisher" <TaxService[at]aol.com> wrote:

- quote -

Very interesting. It makes sense that a company that collected a federal
excise tax but failed to remit it to the IRS was responsible for paying
it over even though the tax was later determined to be non-applicable.

The reason is that the money didn't belong to the company, it belonged to
the customers they collected it from, who are entitled to have it
refunded by the IRS. So it has to be collected so it can be refunded.

Stu

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

CCH TAX NEWS for October 23, 2006

FEDERAL NEWS

CCH Weekly Report --What's Happening on the Tax Front: SFC to Review
JCT Options to Close Tax Gap; Baucus Presses Everson on Extenders Tax
Provisions; IRS Helps Shut Down Drug Money-Laundering Operation
http://tax.cchgroup.com/news/headlin...ws102306.htm#1

Obligation to Replace Property Borrowed in Short Sale Was Code Sec. 752
Liability (COLM Producer, Inc., DC Texas)
http://tax.cchgroup.com/news/headlin...ws102306.htm#2

CEO Was Potentially Liable for Excise Taxes on Long Distance Telephone
Service (Brinskele, FedCl)
http://tax.cchgroup.com/news/headlin...ws102306.htm#3

Ford Vehicles Certified for Hybrid Motor Vehicle Credit (IR-2006-165)
http://tax.cchgroup.com/news/headlin...ws102306.htm#4


STATE NEWS

Texas --Corporate Income Tax: Strategic Investment Area Counties
Announced for 2007
http://tax.cchgroup.com/news/headlin...ws102306.htm#5


Missed a headline? Click here to review last week's tax news
http://tax.cchgroup.com/news/default.asp?PageID=4

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >