June 29, 2009

Judge approves $65M back tax bill for AT&T

A circuit judge in Missouri has issued a preliminary judgment that would make AT&T responsible for paying $65 million in back taxes.

AT&T left out some revenues when paying taxes to Missouri municipalities, which include several cities and St. Louis County, the St. Louis Post-Dispatch reported Monday.

If Judge Edward Sweeney's preliminary approval is confirmed in November, University City would receive about $874,000 while Creve Coeur would receive $862,000, the newspaper said.

Cities should receive on average a 40 percent increase in future telephone tax revenue from AT&T, University City counsel John Mulligan said.

James White, an attorney for St. Louis County said, We're pleased with the settlement.

The settlement says the company does not have to pay taxes on access charges. However, it makes clear is that intrastate long-distance revenue is part of the tax base, White said.