Transaction tax settlement in personal communication devices

• US 20020116302A1
• Filed: 02/15/2002
• Published: 08/22/2002
• Est. Priority Date: 02/15/2001
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Bishop, Fred, Wilmes, Robert
• Granted Patent: US 7,313,538 B2
• Time in Patent Office: Days
• US Class Current: 705/31
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 30/0284 Time or distance, e.g. usage of parking meters or taximeters
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A transactional tax settlement system for use with a personal communication device is provided. The system has particular usefulness in determining a taxing authority and calculating a tax rate imposed by the taxing authority in a communication network environment. The system may be used to determine a tax authority and corresponding tax rate for a buyer/seller transaction over a network, e.g., the Internet. The system may also be used to determine a tax authority and corresponding tax rate in a mobile telecommunications network, e.g., a cellular phone. The system includes a tax information system for determining the taxing authorities and corresponding tax rates by evaluating factors pertaining to the transaction such as, location, tax status, and transaction description. In addition, the tax information system may validate a payment modality, collect taxes, and account for the transaction.

Claims

1. A transaction tax settlement system comprising:

a personal communication device configured to participate in a transaction;

a tax information system; and

a communication network providing two-way communication between said personal communication device and said tax information system, and

said tax information system comprising;

a tax directory having a plurality of tax authorities stored thereon, said tax directory configured to facilitate identification of said tax authorities capable of imposing a tax on said transaction; and

a tax authority calculation corresponding to each of said tax authorities, said tax authority calculation configured to facilitate determination of a tax rate on said transaction.

2. The system of claim 1, wherein said tax information system further comprises an authorization authority configured to validate a payment modality.

3. The system of claim 1, wherein said tax directory identifies said tax authorities upon receipt of a request, said request including a factor of said transaction.

4. The system of claim 3, wherein said factor comprising at least one of a location data, a description of the transaction, or a tax status of a party participating in said transaction.

5. The system of claim 1, wherein said personal communication device submits a request to said tax information system and said request includes factors pertaining to said transaction.

6. The system of claim 5, wherein said tax directory receives said request and returns to said personal communication device information on each of said identified tax authorities capable of imposing a tax on said transaction.

7. The system of claim 6, wherein said returned information includes a location of each of said identified tax authorities.

8. The system of claim 7, wherein said returned information includes a domain name for each of said identified tax authorities.

9. The system of claim 7, wherein said returned information includes a URI of each of said identified tax authorities.

10. The system of claim 5, wherein said tax information system returns to said personal communication device a location of a tax authority calculation.

11. The system of claim 10, wherein said location includes a domain name of a tax authority calculation.

12. The system of claim 10, wherein said location includes a URI of a tax authority calculation.

13. The system of claim 1, wherein said tax rate comprises one of a monetary value, a tax table or a rule.

14. The system of claim 4, wherein said factor comprises a location data received from at least one of a seller'"'"'s point of presence, said personal communication device, or a participating third party.

16. The transactional tax settlement method of claim 15, further comprising the step of validating a payment modality received from a transaction participant.

17. The transactional tax settlement method of claim 15, wherein said communication network comprises the Internet.

18. The transactional tax settlement method of claim 15, wherein said tax rate comprises one of a monetary value, a tax table or a rule.

19. The transactional tax settlement method of claim 15, wherein said evaluating transactional information comprises at least one of a location of said transaction participant, a description of a transaction, a tax status of said transaction participant.

20. The transactional tax settlement method of claim 19, wherein said evaluating transactional information comprises a location of at least one of a seller'"'"'s point of presence, a personal communication device, or a participating third party.

23. The method of claim 16, further comprising determining a location of at least one of said buyer or said seller, said location to be included in said request.

24. The method of claim 18, wherein said determining said location comprises one of a GPS satellite system signal, Network Assisted GPS, Enhanced Observed Time Difference methods, Cell Global Identity Timing Advance, or Uplink Time of Arrival.

25. The method of claim 16, wherein said network environment comprises the Internet, said seller comprises a website, and said buyer comprises a personal communication device.

15. A transactional tax settlement method comprising:

determining a tax authority, from a plurality of tax authorities stored on a tax directory, by evaluating transactional information received over a communication network from a transaction participant;

calculating a tax rate imposed by said tax authority; and

transmitting said tax rate over said communication network to said transaction participant.

21. A method for transactional tax settlement in a network environment, said method comprising:

receiving at a tax information system a request from a seller for a taxing authority based on a sales transaction between said seller and a buyer;

determining said taxing authority, from a plurality of tax authorities stored within said tax information system, by evaluating said request;

determining a tax rate imposed by said taxing authority;

transmitting to said seller said tax rate;

receiving at said tax information system a payment modality for authorization;

validating said payment modality; and

transmitting to said seller an approval or denial of said payment modality in response to said validating step.

22. The method of claim 21, wherein said evaluating said request comprises evaluating at least one of a location of said buyer or said seller, description of said sales transaction, a tax status of said buyer or said seller, or a sales price.

27. The system of claim 26, wherein said tax information system configured to validate a payment modality provided to said seller from said buyer.

28. The system of claim 26, wherein said transaction data comprises a tax status of said buyer.

29. The system of claim 26, wherein said transaction data comprises a location data from at least one of a seller'"'"'s point of presence, said personal communication device, or a participating third party.

35. The system of claim 27, further comprising a third-party payment facilitator in communication with at least one of said personal communication devices and said tax information system.

26. A transactional tax settlement system for use in a buyer/seller transaction over a network, said system comprising:

a personal communication device configured to initiate a purchase request from a seller via said network;

a tax information system configured to receive a request from said seller via said network, said request comprising transaction data for said tax information system to consider in facilitating identification of a taxing authority capable of imposing a tax on said purchase, and in facilitating calculation of a tax rate corresponding to said taxing authority; and

an electronic invoice transmitted to said personal communication device, said invoice representative of said purchase and including said tax rate.

30. A transactional tax settlement system for use in a telecommunications network, said system comprising:

a mobile communication device configured to communicate over a wireless telecommunication network;

a telecommunication service provider configured to facilitate a connection to said wireless telecommunication network by said mobile communication device;

a tax information system;

a communication network providing two-way communication between said telecommunication service provider and said tax information system, and

said tax information system comprising;

a tax directory configured to facilitate identification of a taxing authority capable of imposing a tax on said connection; and

a tax authority calculation corresponding to said tax authority and configured to facilitate determination of a tax rate on said connection.

31. The system of claim 30 further comprising a location identification system configured to identify a location of said mobile communication device.

32. The system of claim 31, wherein said location identification system comprises a spatial location and a positional location.

33. The system of claim 30, wherein said telecommunication service provider comprises an Internet Service Provider (ISP) and said mobile communication device configured in a Voice-over-Internet (VOIP) communication.

36. They system of claim 35, wherein said tax information system receiving a location data from at least one of said first personal communication device, said second personal communication device, or said third party payment facilitator.

34. A transactional tax settlement system for use in a peer-to-peer transaction, said system comprising:

a first personal communication device configured to participate in a peer-to-peer transaction;

a second personal communication device configured to participate with said first personal communication device in said peer-to-peer transaction;

a tax information system; and

a communication network providing two-way communication between one of said personal communication devices and said tax information system; and

said tax information system comprising;

a tax directory having a plurality of tax authorities stored thereon, said tax directory configured to facilitate identification of said tax authorities capable of imposing a tax on said transaction; and

a tax authority calculation corresponding to each of said tax authorities, said tax authority calculation configured to facilitate determination of a tax rate on said transaction.