Tax file: IRS simplifies phone tax refund

Jan. 1, 2007
Last May, after several appeals courts ruled that the 3% federal telephone excise tax does not apply to most long-distance service

Last May, after several appeals courts ruled that the 3% federal telephone excise tax does not apply to most long-distance service, the Treasury Dept. announced it would allow taxpayers to file for refunds on taxes on such calls from March 2003 through July 2006. Now the IRS has created a new form that includes a formula businesses can use to avoid having to comb through 41 months of old phone records.

This will be a significant simplification for many carriers, which are typically heavy users of long-distance phone service. Businesses can now calculate the federal tax charged as a percentage of their April 2006 phone bill, when the tax applied to local and long-distance service, and their September 2006 bill, when the tax applied only to local service. They will be entitled to a refund equal to the difference in the two percentages times their total phone bills over the March 2003-July 2006 period. Businesses that prefer to go through the details of each month's bill may still file for a refund of the actual tax on long-distance service during those months.

About the Author

KEN SIMONSON

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!