AT&T says it's working hard to refund customers for an illegal tax collection, but is running into trouble doing so.
It all stems from a settlement the communications giant agreed to with the state of Washington. Due to a billing error, between 2005 and 2010, the carrier collected municipal taxes on Internet data services, which is not authorized; those taxes only apply to phone service, KIRO-TV reported.
The problem is that AT&T must now get the money back from the cities to pay customers back. It wants $5 million from the City of Seattle alone, which says it's reviewing the request.
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