Transactional tax settlement in personal communication devices

• US 8,214,269 B2
• Filed: 07/25/2007
• Issued: 07/03/2012
• Est. Priority Date: 02/15/2001
• Status: Expired due to Fees

• 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
• Primary Examiner(s): SHEIKH, ASFAND M
• Application Number:
  US11/828,230
• Publication Number:
  US 20080021800A1
• Time in Patent Office: 1,805 Days
• Field of Search: None
• 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 method for determining a tax rate in a network environment, said method comprising:

receiving, at a tax information system, a request from a local client for said tax rate, wherein said request includes transaction information related to a transaction;

determining, by said tax information system, a subset of taxing authorities capable of imposing a tax on said transaction, from a plurality of taxing authorities stored within said tax information system, based upon said transaction information;

transmitting, by said tax information system, said subset of taxing authorities capable of imposing a tax on said transaction to said local client;

receiving, by said tax information system, a selection of a selected taxing authority from said local client;

determining, by said tax information system, a tax rate imposed by said selected taxing authority and based on said transaction information; and

transmitting, by said tax information system, said tax rate to said local client, wherein said tax information system comprises;

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, wherein said telecommunication service provider comprises;

a database for maintaining stored tax rates and stored tax calculation rules when said stored tax rates and said stored tax calculation rules are not subject to modification for a predetermined period of time;

a location apparatus for determining a geographic location of said mobile communications device;

a tax module for determining when said stored tax rates and said stored tax calculation rules should be modified based on a universally coordinated timestamp provided by a location signal of said location apparatus and connecting to a tax information system to retrieve an update to said stored tax rates and said stored tax calculation rules;

said tax module configured to retrieve said stored tax rates and said stored tax calculation rules when said stored tax rates and said stored tax calculation rules are applicable to said connection;

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

said tax information system configured to retrieve a list of identified tax authorities when said database does not include said stored tax rates and tax calculation rules applicable to said transaction, wherein said tax information system comprises;

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

said tax directory configured to return said subset of taxing authorities to said telecommunications service provider such that said telecommunications service provider can select from said taxing authorities, wherein said tax information system does not calculate a tax amount;

said tax information system configured to receive a tax request directly from telecommunications service provider, wherein said tax request includes information relating to said transaction data; and

,

a tax authority calculator corresponding to said identified tax authority and configured to facilitate determination of a tax rate and a tax rate calculation rule on said connection, wherein said tax rate and said tax calculation rule is returned directly to said telecommunications service provider.

2. A method, comprising:

receiving, at a tax information system, a request from a local client for a tax rate, wherein said request includes transaction information related to a transaction, and wherein said local client is a wireless communications device;

determining, by said tax information system, a subset of taxing authorities capable of imposing a tax on said transaction, from a plurality of taxing authorities stored within said tax information system, based upon said transaction information;

transmitting, by said tax information, system, said subset of taxing authorities capable of imposing a tax on said transaction to said local client;

receiving, by said tax information system, a selection of a selected taxing authority from said local client;

determining, by said tax information system, a tax rate imposed by said selected taxing authority and based on said transaction information;

transmitting, by said tax information system, said tax rate to said local client;

sending, by said tax information system, a listing of tax rates and a listing of tax calculation rules to said local client, wherein said local client groups a subset of said listing of tax rates and a subset of said listing of tax calculation rules based on whether said listing of tax rates and said listing of tax calculation rules are not subject to modification for a predetermined period of time, and wherein said local client stores said subset of said listing of tax rates and said subset of said listing of tax calculation rules to create stored taxation rules;

receiving, by said tax information system, a request for a transaction from said local client, wherein said transaction is subject to said stored taxation rules;

determining, by said tax information system, a geographical location of said local client based upon said request for said transaction and using a location apparatus;

searching, by said tax information system, for a tax rate and a tax calculation rule from said taxation data located on said local client based on said request and said geographic location;

determining, by said tax information system, that an update is required of said tax rate and said tax calculation rule located on said local client, in response to said determining that an update is required; and

sending, by said tax information system, an update for said tax rate and said tax calculation rule to said local client.

3. The method of claim 2, further comprising calculating a tax amount based on said tax rate and said transaction information.

4. The method of claim 2, further comprising:

receiving, at said tax information system, transaction account information for authorization;

validating said transaction account information;

calculating a tax amount based on said tax rate;

authorizing an amount of said transaction plus said tax amount, in accordance with said transaction account information; and

transmitting to said local client an approval of said transaction.

5. The method of claim 2, wherein said tax rate comprises at least one of:

a monetary value, a tax table and a rule.

6. The method of claim 2, wherein said transaction information comprises a location of said local client, wherein said local client is a wireless communication device.

7. The method of claim 2, wherein said transaction includes at least one of a:

sale, lease, rent, barter, loyalty point transaction and layaway plan.

8. The method of claim 2, further comprising determining a location of at least one of:

a store associated with said transaction, a headquarters of said store associated with said transaction, a local client wherein said local client is a wireless communication device.

9. The method of claim 8, wherein said determining comprises using at least one of:

a global positioning system (GPS) satellite system signal, Network Assisted GPS, Enhanced Observed Time Difference methods, Cell Global Identity Timing Advance, and Uplink Time of Arrival.

10. The method of claim 2, wherein said local client is configured to at least one of sell, distribute, rent and barter items via a website that is connected to said network environment.

11. The method of claim 2, wherein said local client may be operated by buyer that uses a personal communication device to connect to said network environment.

12. The method of claim 2, wherein said determining said taxing authority comprises using a tax directory having a listing of taxing authorities.

13. The method of claim 2, wherein said determining said taxing authority comprises determining information related to how each taxing authority calculates said tax rate.

14. The method of claim 2, wherein said determining said taxing authority comprises determining a recommendation on a most appropriate taxing authority for said transaction.

15. The method of claim 2, wherein said transmitting said subset of taxing authorities includes transmitting a URL for each of said taxing authorities.

16. The method of claim 2, wherein said receiving and transmitting occur over a wireless network.

17. The method of claim 2, wherein said determining that said update is required comprises determining that said update is required based upon based on a universally coordinated timestamp provided by a location signal of said location apparatus.

18. A non-transitory tangible computer-readable storage medium having computer-executable instructions stored thereon that, if executed by a computer-based tax information system, cause said tax information system to perform operations comprising:

receiving, at said tax information system, a request from a wireless communications device for a tax rate, wherein said request includes transaction information related to a transaction;

determining, by said tax information system, a subset of taxing authorities capable of imposing a tax on said transaction, from a plurality of taxing authorities stored within said tax information system, based upon said transaction information;

transmitting, by said tax information system, said subset of taxing authorities capable of imposing a tax on said transaction to said wireless communications device;

receiving, by said tax information system, a selection of a selected taxing authority from said wireless communications device;

determining, by said tax information system, a tax rate imposed by said selected taxing authority and based on said transaction information;

transmitting, by said tax information system, said tax rate to said wireless communications device, wherein said wireless communications device groups a subset of said listing of tax rates and a subset of said listing of tax calculation rules based on whether said listing of tax rates and said listing of tax calculation rules are not subject to modification for a predetermined period of time, and wherein said wireless communications device stores tax calculation rules to create stored taxation rules;

receiving, by said tax information system, a request for a transaction from said wireless communications device, wherein said transaction is subject to said stored taxation rules;

determining, by said tax information system, a geographical location of said wireless communications device using a location apparatus;

searching for a tax rate and a tax calculation rule from said taxation data located on said wireless communications device based on said request and said geographic location;

determining, by said tax information system and based on a universally coordinated timestamp provided by a location signal of said location apparatus, that an update is required of said a tax rate and said tax calculation rule located on said wireless communications device, and

in response to said determining that an update is required, sending, by said tax information system, an update for said tax rate and said tax calculation rule to said wireless communications device.

19. A computer-based tax information system, comprising,

a network interface communicating with a memory;

said memory communicating with a tax information processor; and

said processor is configured to;

receive a request from a wireless communications device for a tax rate, wherein said request includes transaction information related to a transaction;

determine a subset of taxing authorities capable of imposing a tax on said transaction, from a plurality of taxing authorities stored within said tax information system, based upon said transaction information;

transmit said subset of taxing authorities capable of imposing a tax on said transaction to said wireless communications device;

receive a selection of a selected taxing authority from said wireless communications device;

determine a tax rate imposed by said selected taxing authority and based on said transaction information;

transmit said tax rate to said wireless communications device, wherein said wireless communications device groups a subset of said listing of tax rates and a subset of said listing of tax calculation rules based on whether said listing of tax rates and said listing of tax calculation rules are not subject to modification for a predetermined period of time, and wherein said wireless communications device stores tax calculation rules to create stored taxation rules;

receive a request for a transaction from said wireless communications device, wherein said transaction is subject to said stored taxation rules;

determine a geographical location of said wireless communications device using a location apparatus;

search for a tax rate and a tax calculation rate from said taxation data located on said wireless communications device based on said request and said geographic location;

determine, based on a universally coordinated timestamp provided by a location signal of said location apparatus, that an update is required of said a tax rate and said tax calculation rule located on said wireless communications device, and

in response to said determining that an update is required, send an update for said tax rate and said tax calculation rule to said wireless communications device.