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Federal Tax refunds on long-distance telephone calls
ELIMINATION OF OUTDATED TAX GENERATES REFUNDS
The US Treasury Department announced that it is ending the legal dispute over the federal excise tax on long-distance telephone service and will issue refunds on long-distance tax within the past three years. Taxpayers can apply for reimbursement on upcoming 2006 tax returns. Senator Clinton wants to ensure the IRS issues the refunds and is calling on them to create an easy method for claim filing. Thus far, the Treasury Department has released these key facts regarding tax refunds: · No immediate action is required by taxpayers. · Refunds will be a part of 2006 tax returns filed in 2007. · Refund claims will cover all excise tax paid on long-distance service within the last three years with interest. · The IRS is working to simplify tax refund claim methods. · Refunds will not include tax paid on local telephone service. Originally established in 1898 as a “luxury” tax on wealthy Americans with telephones, the federal tax on phone calls is no longer relevant in contemporary society.
Normally, taxpayers have three years to claim a tax refund. Usually, the IRS pays interest on late refunds only if there has been a substantial delay in processing the tax return. In this case, the IRS is voluntarily agreeing to pay interest on the excise tax refund. So that's some really good news!
Individuals will be allowed to claim refunds on their 2006 tax returns, filed in 2007, for taxes paid on long-distance telephone calls since March 2003.
Taxpayers can calculate the actual taxes paid and apply for a refund, or they can claim a standard amount that will be set later by the Treasury Department and Internal Revenue Service.
Snow said the government does not know how much money individual taxpayers can expect to receive, but the Treasury expects to return $13 billion to individuals, businesses and others who paid the tax. It typically amounts to a few dollars on the average consumer’s telephone bill.
Depsite assurances that claiming the excise tax refund will be simple, I would urge you to dig through your phone bills now. If you are like me, I throw away bills as soon as I know the bill has been paid. In fact, most of the time I get summaries of my bills sent via email.
<collected from various sources>
The US Treasury Department announced that it is ending the legal dispute over the federal excise tax on long-distance telephone service and will issue refunds on long-distance tax within the past three years. Taxpayers can apply for reimbursement on upcoming 2006 tax returns. Senator Clinton wants to ensure the IRS issues the refunds and is calling on them to create an easy method for claim filing. Thus far, the Treasury Department has released these key facts regarding tax refunds: · No immediate action is required by taxpayers. · Refunds will be a part of 2006 tax returns filed in 2007. · Refund claims will cover all excise tax paid on long-distance service within the last three years with interest. · The IRS is working to simplify tax refund claim methods. · Refunds will not include tax paid on local telephone service. Originally established in 1898 as a “luxury” tax on wealthy Americans with telephones, the federal tax on phone calls is no longer relevant in contemporary society.
Normally, taxpayers have three years to claim a tax refund. Usually, the IRS pays interest on late refunds only if there has been a substantial delay in processing the tax return. In this case, the IRS is voluntarily agreeing to pay interest on the excise tax refund. So that's some really good news!
Individuals will be allowed to claim refunds on their 2006 tax returns, filed in 2007, for taxes paid on long-distance telephone calls since March 2003.
Taxpayers can calculate the actual taxes paid and apply for a refund, or they can claim a standard amount that will be set later by the Treasury Department and Internal Revenue Service.
Snow said the government does not know how much money individual taxpayers can expect to receive, but the Treasury expects to return $13 billion to individuals, businesses and others who paid the tax. It typically amounts to a few dollars on the average consumer’s telephone bill.
Depsite assurances that claiming the excise tax refund will be simple, I would urge you to dig through your phone bills now. If you are like me, I throw away bills as soon as I know the bill has been paid. In fact, most of the time I get summaries of my bills sent via email.
<collected from various sources>
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