For years the District officials have been attempting to recover back taxes from online travel companies. On February 24, 2014, D.C. Attorney General Irvin B. Nathan made the $60 million tax debt conditional settlement public.
The travel companies involved in the litigation are Travelocity, Expedia, Priceline and Orbitz. These companies still “reserve the right to appeal the D.C. Superior Court decision that placed them on the hook for the back taxes,” wrote Mike Debonis of the Washington Post on Monday.
It has been more than two years of legal proceedings and political discussions “over whether and how much money Internet hotel bookers owed the city after years of paying the city’s 14.5 percent hotel room tax based on the wholesale price of the rooms they sold, and not based on the full retail price,” wrote Debonis.
Between the years of 1998 and 2010, the full debt owed to the city is estimated to be around $200 million. It was not until 2010 that the D.C. Council required hotel-booking companies to pay taxes based on the retail value of each sale.
“With $60.9 million plus interest now on the line, expect that decision to be appealed in short order. Should the District ultimately collect, Nathan’s office said Monday, it would be the largest recovery the city has ever secured in a case it has litigated,” wrote Debonis.
Back Taxes Are Becoming More Common
If you or your business owe back taxes to the government contact a tax resolution lawyer today. The sooner your resolve the debt you have with the Internal Revenue Service (IRS) the more you will save yourself in time, stress and money.
It is not uncommon for Americans to finish filing their taxes only to learn they owe more money than they can afford to pay the IRS. Many higher-income filers will owe more taxes this year due to the Affordable Care Act. Do not let IRS debt cause you stress, contact the professional and knowledgeable tax resolution lawyers at U.S. Tax Shield today. Our team can find a solution for you to clear your debt and show you how to save on taxes in the future.