Tuesday, December 11, 2007

AT&T division will pay millions to settle cellphone tax

AT&T Mobility, a unit of AT&T Inc., has agreed to pay as much as $76 million to settle a cellphone-tax lawsuit brought by Missouri municipalities against wireless carriers operating in the state, The Wall Street Journal reported.

The municipalities assert that they can levy on cellphone service a tax normally applied to utilities and traditional "landline" phone companies.

Verizon Wireless settled the lawsuit last September for $31.5 million. Both Verizon and AT&T agreed to start collecting the tax from their customers.

Monday, December 3, 2007

Security firm challenged on whether guards are contractors or employees for tax purposes

A congressional leader is looking into Blackwater Worldwide's practice of paying its guards as independent contractors and not withholding taxes, the Wall Street Journal reported today.

Rep. Henry Waxman (D-Calif.), chair of the House Oversight and Government Reform Committee, wrote in an Oct. 22 letter to Blackwater that he believes the company "may have avoided paying millions of dollars in Social Security, Medicare, unemployment, and related taxes for which it is legally responsible," according to the Journal.

Blackwater, which provides security for the U.S. government in Iraq and elsewhere, said its tax policy follows the law.