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Deceptive or Illegal Fees and Billing

Corporations Charging Improper Taxes

When you shop, you expect merchants to charge you only the taxes which are actually required by law. However, sometimes corporations charge improper taxes that don’t go to any government entity and are just pocketed by the corporation. It is illegal for corporations to characterize a fee as a tax, when it is not.

For example, some states prohibit charging sales tax on shipping charges, while federal law prohibit sales tax on Internet services. Despite this, some companies may nonetheless charge such taxes. Our consumer rights attorneys fight for consumers who were improperly charged taxes.

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Corporations Charging Improper Taxes Details

From taxing goods and services which are not subject to tax, to imposing taxes improperly on certain kinds of goods, many corporations engage in unfair and improper tax practices. For instance, federal law prohibits charging tax on internet services, while other states prohibit sales tax on food or other personal necessities such as toiletries and clothing. Other companies may be disguising company charges as taxes or government-imposed fees. While these charges are often small in amount, corporations are able to make significant profits over time as they can go unnoticed.

For any given unlawful tax, there are likely thousands of consumers who have paid them. Our consumer attorneys are here to help stop companies from engaging in these unlawful tax practices.

Examples of Corporations Charging Improper Taxes

  • Charging tax on internet services, a practice that is forbidden under the Internet Tax Freedom Act.
  • Imposing unlawful sales tax on food or beverages.
  • Charging the wrong sales tax rate on items that can be taxed.
  • Failing to refund taxes in full on items that are returned.
  • Disguising charges which are actually company charges as government imposed taxes or government imposed fees.

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