Free Stipulation - District Court of Federal Claims - federal

Case 1:03-cv-02754-TCW

Document 67

Filed 09/21/2007

Page 1 of 2

IN THE UNITED STATES COURT OF FEDERAL CLAIMS ______________ No. 03-2754 T (JUDGE WHEELER) XO COMMUNICATIONS, INC., Plaintiff v. THE UNITED STATES, Defendant ______________ JOINT STIPULATION ______________ The parties hereby stipulate and agree that they will follow the decision of the Court of Appeals for the Federal Circuit in USA Choice Internet Service, LLC v. United States, 73 Fed. Cl. 780 (2006), appeal pending, No. 07-5077 (Fed. Cir. Feb. 8, 2007), with respect to the following legal issues: 1. Whether service on "incoming-only" telephone lines that connected taxpayer's

internal networks to central offices of local telephone systems is taxable as "local telephone service" within the meaning of § 4252(a)(1) of the Code. 2. Whether "incoming-outgoing" telephone lines that connected taxpayer's internal

networks to central offices of local telephone systems gave taxpayer "exclusive or priority use of any communication channel or groups of channels" within the meaning of § 4252(d)(1)(A), and consequently are exempt from tax as "private communication service" to the extent that charges therefor were separately stated. -1-

Case 1:03-cv-02754-TCW

Document 67

Filed 09/21/2007

Page 2 of 2

The parties reserve the right to contest all factual issues in this case related to the application of the Federal Circuit's decision on the foregoing legal issues. Respectfully submitted, September 21, 2007 Date s/Anthony C. Gulotta Anthony C. Gulotta, Esquire Anderson & Gulotta, P.C. 1110 North Mountain Road Harrisburg, PA 17112 (717) 635-7145 Fax (717) 541-5434 [email protected] Attorney for Plaintiff s/ G. Robson Stewart G. ROBSON STEWART U.S. Department of Justice, Tax Division Court of Federal Claims Section Post Office Box 26 Ben Franklin Post Office Washington, D.C. 20044 (202) 307-6493 RICHARD T. MORRISON Acting Assistant Attorney General DAVID GUSTAFSON Chief, Court of Federal Claims Section Steven I. Frahm Assistant Chief September 21, 2007 Date s/Steven I. Frahm Of Counsel Attorneys for Defendant

September 21, 2007 Date

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