Excise taxes, text of IRS rules
#1
Original Poster

Join Date: Apr 1999
Location: South Florida USA
Programs: DL-MM/FC/FO AA-EXP/MM Starwood-Platinum Marriott-Platinum Hilton-Gold Hyatt-Diamond
Posts: 1,515
Excise taxes, text of IRS rules
I hope this can put to rest the issue regarding what MCI and Sprint are doing in regards to collecting the excise tax on mileage.
Please see my comments in the following thread http://www.flyertalk.com/forum/Forum...ML/000042.html
Thanks
TW
Please see my comments in the following thread http://www.flyertalk.com/forum/Forum...ML/000042.html
Thanks
TW
#2
Original Member
Join Date: May 1998
Location: Kirkland, WA
Posts: 6,932
Not at all. They're still advertising one rate and collecting a higher rate. Nothing is preventing them from including all taxes and fees in the advertised rate and putting a breakdown of taxes in small print for anyone interested. It's all part of the scam. Yesterday I received two letters on airline letterhead with "MEMBERSHIP INFORMATION ENCLOSED" in big letters on the envelops. Inside was nothing but an MCI come-on: switch and get 5000 miles. A blatant lie, as there was no membership information enclosed at all. This is a company that thrives on lying and cheating. They have a standard practice of collecting extortionary rates for long distance calls during the time between when you switch to another carrier and the local phone company actually makes the switch... as much as $3.minute for domestic calls! Then they refuse to credit the discrepancy.
No, this is a company best avoided.
No, this is a company best avoided.
#3
Join Date: Dec 1999
Location: This year we're going to the BAFTAs!
Posts: 5,518
Originally posted by QuietLion:
... Nothing is preventing them from including all taxes and fees in the advertised rate and putting a breakdown of taxes in small print for anyone interested. It's all part of the scam. Yesterday I received two letters on airline letterhead with "MEMBERSHIP INFORMATION ENCLOSED" in big letters on the envelops. Inside was nothing but an MCI come-on: switch and get 5000 miles. A blatant lie, as there was no membership information enclosed at all. ... No, this is a company best avoided.
... Nothing is preventing them from including all taxes and fees in the advertised rate and putting a breakdown of taxes in small print for anyone interested. It's all part of the scam. Yesterday I received two letters on airline letterhead with "MEMBERSHIP INFORMATION ENCLOSED" in big letters on the envelops. Inside was nothing but an MCI come-on: switch and get 5000 miles. A blatant lie, as there was no membership information enclosed at all. ... No, this is a company best avoided.
How should MCI collect the tax imposed on miles anyway? Not everybody gets miles, not in the same amount, etc... By raising its rates for all customers? And in what proportion, given the problems I just mentioned.
Dealing with the FCC's myriad of fees, rules and regulations probably keeps many people busy at MCI/Sprint/ATT etc... AT&T has no shortage of customers who belong to no calling plan, and are therefore being charged the kind of standard rates you mention about MCI. You have undoubtedly seen the many AT&T customers --including myself-- who have had to go through countless exchanges with AT&T to collect their miles as detailed on these boards.
I have heard of many cases, as you mention, where people are charged "standard" rates for long distance after a switch. Whether MCI is more guilty of this than others isn't obvious, as best I can tell. Asking your local phone company to do the switch -- and waiting for it to be done -- before calling MCI to close one's account seems like a simple way of avoiding being taken out of one's calling plan. Yet that should not be necessary, and clearly is a matter the FCC needs to address.
While I agree that much leaves to be desired with MCI, "advertising one price and charging another" is hardly something that they deserve to be singled out for. While I personally prefer the European practice of having a price that includes all taxes on goods I purchase, this just doesn't seem to be the preferred option here (USA/Canada). I don't like it, but I won't hold it against MCI.
#4
Original Poster

Join Date: Apr 1999
Location: South Florida USA
Programs: DL-MM/FC/FO AA-EXP/MM Starwood-Platinum Marriott-Platinum Hilton-Gold Hyatt-Diamond
Posts: 1,515
Regarding the time period between switching carriers:
The FCC allows carriers to add a per minute surcharge for casual access to a network. You are a casual user if you have no account with the carrier. (of course the 1010xxx companies do not add this charge)
Some carriers networks are totally open, Others like cable and wireless are closed and you cannot complete a call unless you have an account with them.
Every time I have called the local phone company to switch carriers they have asked me "Have you notified your new carrier yet"
When you leave a carrier ending your relationship they are under no obligation to continue to price you calls under your prior arrangement. Nor are they required to advise you of the price you will be charged should your calls complete over their network before you are switched to your new choice.
For those that have not had this problem yet the best advice is to either: Call your new carrier and have them switch you. When you have verified that you have been switched by your local phone company, call and cancel your prior service or Call the phone company and switch to the new carrier, then call the new carrier and set up the account. When you have verified the new account is active cancel your old one. 1.700.555.4141 will tell you your current carrier.
TW
The FCC allows carriers to add a per minute surcharge for casual access to a network. You are a casual user if you have no account with the carrier. (of course the 1010xxx companies do not add this charge)
Some carriers networks are totally open, Others like cable and wireless are closed and you cannot complete a call unless you have an account with them.
Every time I have called the local phone company to switch carriers they have asked me "Have you notified your new carrier yet"
When you leave a carrier ending your relationship they are under no obligation to continue to price you calls under your prior arrangement. Nor are they required to advise you of the price you will be charged should your calls complete over their network before you are switched to your new choice.
For those that have not had this problem yet the best advice is to either: Call your new carrier and have them switch you. When you have verified that you have been switched by your local phone company, call and cancel your prior service or Call the phone company and switch to the new carrier, then call the new carrier and set up the account. When you have verified the new account is active cancel your old one. 1.700.555.4141 will tell you your current carrier.
TW
#5




Join Date: Nov 1999
Location: ABQ
Programs: SPEBSQSA
Posts: 3,795
I may be in the minority here, but I've had MCI for years, and have never had a major problem. Been earning miles for over two years.
Am I just lucky?
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The only difference between ordinary service and extraordinary service is a little EXTRA.
-- Bob
Am I just lucky?
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The only difference between ordinary service and extraordinary service is a little EXTRA.
-- Bob

