The standard amounts that most long-distance customers can use to figure their telephone tax refund range from $30 to $60, enabling millions of individual taxpayers to request the refund without having to dig through old phone bills.
In general, anyone who paid the long-distance telephone tax will get the refund on their 2006 federal income tax return. To get the standard amount, eligible taxpayers only need to fill out one additional line on their 2006 return. For those who don’t need to file a regular return, a special form (Form 1040EZ-T) can be used.
Businesses and nonprofits must base their refund on the actual amount of tax paid. However, the IRS is considering an estimation method businesses and nonprofits may use for figuring the tax paid.
The IRS welcomes comments and suggestions for simplifying the refund process for businesses and nonprofits. E-mail to Telephone.Tax@irs.gov by Sept. 15, 2006.
This message brought to you by: Cormier & Rea, Inc. Sturbridge MA. Providers of Income tax planning and preparation and financial planning. For more information about this or any other issues regarding income tax planning or preparation or financial planning, feel free to contact us. Like Cormier & Rea, Inc. on Facebook for timely updates.