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| Tip
Of The Month |
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| Telephone Tax Refund |
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| The IRS has announced that it will stop collecting federal excise tax on long-distance telephone service. This comes after five federal appeals courts determined that the tax does not apply to long-distance service. Anyone who paid the excise tax will get a refund on their 2006 return. Individuals can claim a standard amount ranging from $30 to $60 based upon the number of exemptions they claim on their return at this time. Businesses and nonprofits must base their refunds on the actual tax paid but the IRS is working on possibly coming up with a reasonable method for estimating their excise tax refund. The long-distance tax on service billed after February 28, 2003 and before August 1, 2006 are eligible for a refund. |
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