Morris and Associates is proud to have been selected by a national aggregation of lawyers to participate in a National Class Action against AT&T arising from AT&T's inadvertent collection of approximately $1.2 billion in state and municipal sales taxes in connection with internet charges, mostly arising from I-Phone usage plans.  The Internet Fairness Act prohibits the collection of such taxes and charges.

The Internet Tax Fairness Act, 47 U.S.C. § 151 (1998) as amended, bars state and local government from imposing taxes on internet access. “No State or political subdivision thereof shall impose any of the following taxes during the period beginning November 1, 2003, and ending November 1, 2014: … (1) Taxes on Internet access.”

AT&T has agreed to resolve the case and has ceased collecting these taxes across the country, providing an immediate benefit to consumers valued at over an additional $1 billion. Attorney Stephen B. Morris, together with some 45 other law firms across the United States, is seeking to effectuate the settlement of this case valued at in excess of $2 billion, the final approval of which is now pending in the United States District Court in Chicago, Illinois. A decision on the approval of the settlement is anticipated in May, 2011.

UPDATE:  A Federal Judge in Chicago, Illinois issued her final approval of the settlement in the national multi district litigation proceedings on June 2, 2011.  This clears the path for the attorneys to pursue refunds of the taxes collected.  Morris and Associates is Class Counsel for California and is actively pursuing the refunds of approximately 150 million dollars for California residents.