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Telephone Tax Refund
In May 2006 the IRS announced that it will stop collecting the federal excise tax on long-distance
telephone service. Taxpayers will be eligible to claim a refund of all excise tax thay have paid
on long-distance service billed to them after February 28, 2003.
Individuals will claim this refund on their 2006 Federal tax return. They can either choose to calculate
the tax that they paid between Feb. 28, 2003 and August 1, 2006 or elect to use standard amounts, which
range between $30 and $60.
The standard amounts are based on the total number of exemptions claimed on the tax return. They are $30
for a single person filing a return with one exemption, $40 for a return with 2 exemptions,
$50 for three exemptions and $60 for four or more exemptions.
Tax payers who are not required to file a federal income tax return may claim the refund using
a new federal form 1040EZ-T.
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