Carbon will also remove some of the chemicals from your tapwater (NOT chlorine or chloramines, though). If you're concerned that your tapwater might have dissolved organic material, unwanted chemicals, or minerals, it might be good for helping to remove them (kind of like filtering your water you drink...pUr water filters primarily use carbon to remove the "chemical" smell from your drinking water.) This is best done with a newer tank, as after the cycle is established, beneficial bacteria will take care of most of these problems with or without the presense of carbon. (Thereby making the carbon more or less unneccessary).
Carbon is only "active" for a couple of days, tops. After that, it's a nice little hiding place for good bacteria, so it's not a terrible idea to use it, just remove it before medicating your tank, even if it's been there a while. Carbon will still adsorb (yep, different from absorb) some chemicals even if it's not "fizzy" anymore, although new carbon is more effective at it.