RCN Escapes Class Action Over Collection Of Disputed Tax

Law360, New York (November 15, 2012, 4:36 PM EST) -- A New York federal judge on Wednesday tossed a proposed class action claiming telecommunications company RCN Corp. improperly collected a federal excise tax on certain services from unwitting subscribers for years, saying RCN cannot be sued for doing what the government required it to do.

U.S. District Judge Jesse M. Furman sided with RCN, saying the company was statutorily required to collect the disputed 3 percent tax for telephone calls, based on their distance and transmission time, and was acting as a designated collection agent for...
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