U.S. Supreme Court

Case Status


Docket Number


Cert. Denied


Questions Presented

Whether, contrary to the Federal Circuit's decision in USA Choice Internet Services, LLC v. United States, the Internal Revenue Service can tax as “local telephone service” under 26 U.S.C. § 4251 the purchase of data services that do not enable the purchaser to make or receive telephone calls.

Case Updates

Cert. petition denied

November 06, 2014

U.S. Chamber urges Supreme Court to review decision that allowed internet services to be taxed under local telephone services excise tax

May 21, 2014

In its brief, the Chamber urged the Supreme Court to grant review and reverse the decision of the Second Circuit. The Chamber argued that the Second Circuit’s conclusion that data-only services are covered by the “local telephone service” excise tax is wrong. The relevant statutory text makes clear that only services that can themselves complete local telephone calls are taxable under the statute. The Second Circuit’s conclusion is based on a convoluted construction of the statutory text and fails to account for why the textual variations the court found dispositive were adopted in the first place. The Chamber argued that the Second Circuit’s holding is also irreconcilable with IRS revenue rulings, the FCC’s long standing view of how data-only services should be treated under federal law, and Federal Circuit precedent defining the scope of the “local telephone service” tax.

H. Christopher Bartolomucci and D. Zachary Hudson of Bancroft PLLC represented the U.S. Chamber as co-counsel to the National Chamber Litigation Center in this case.

Case Documents