IRS Says High Court Should Skip 'Obsolete' WorldCom Case

Law360, Los Angeles (August 1, 2014, 10:08 PM EDT) -- The Internal Revenue Service has urged the U.S. Supreme Court to pass on reviewing a decision holding now-defunct WorldCom Inc. liable for $26 million in excise taxes and interest on a telecom service for dial-up modems, arguing that the technology is now obsolete.

The question of whether WorldCom, which later became MCI Inc. and is now a unit controlled by Verizon Communications Inc., should have paid taxes on the service as a telephone provider even though it didn’t enable phone calls isn’t important anymore, the IRS...
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