The IRS says the Telephone Excise Tax Refund (TETR) will be the most wide-reaching refund in IRS history -Â more than 160 million filers may request it.
What Is The Telephone Excise Tax Refund?
It is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it.
Individual Refund Claims
Taxpayers have 2Â choices
- Claim a standard refund amount between $30 and $60, based on the total number of exemptions claimed on their 2006 tax return. The benefit of this option is that you don’t need to locate old phone bills (who keeps them?).
- If you can locate those bills you can use the actual amount.
For option 1 the standard refund amount, there is an extra line on your tax returns for the refund.
For option 2 where you have the old phone bills, you can figure the refund using the actual amount of tax paid. In this case you need to fill out Form 8913, Credit for Federal Telephone Excise Tax Paid, and attach it to your return.
- If you are claiming the standard amount (no phone bills)Â use the new Form 1040EZ-T, Request for Refund of Federal Telephone Excise Tax.
- Where you have the old phone bills and are claiming the actual amount, attach Form 8913 to Form 1040EZ-T. Some companies offer free e-filing of Form 1040EZ-T.
Find more 2006 tax refund news at http://taxassistonline.com/wordpress
