Federal Excise Tax - Reminder

Last April I posted about the announcement of the Federal Excise Tax that wireless consumers in the United States had been charged with over the years and that we can now receive that money back.  Tax season has started so just to recap what I mentioned here are a few links to help you out.

Last year, the U.S. Treasury Department announced that the 3% Federal Excise Tax (FET) would no longer be applied to long-distance telephone service, including   wireless. This is a huge win for wireless consumers who will no longer be forced to pay this outdated and unfair tax! Additionally, the Internal Revenue Service (IRS) will be issuing refunds on long-distance services, including wireless, for the past three years. According to the Treasury Department’s announcement, eligible taxpayers will be able to apply for this refund with the IRS during the 2006 federal tax form filing season. The official start of the tax season began on Tuesday, January 2, 2007, with electronic filing beginning on Friday, January 12, 2007. The official deadline for the tax season will fall on Monday, April 16, 2007. According to the IRS website:

  “The Telephone Excise Tax Refund (TETR) 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."  Source: MyWireless.org

How do I get the telephone tax refund?

In general, anyone who paid the telephone tax on their long-distance or bundled service may be eligible to request the refund on their 2006 federal income tax return. This includes individuals, businesses and nonprofit organizations. The 2006 return is usually filed during 2007.

The IRS is making it easier for individual taxpayers by offering a standard refund amount between $30 and $60, so that these taxpayers don’t need to gather old phone bills. Taxpayers who choose the standard amount will only need to fill out one line on their tax returns. The standard amount is based on actual telephone usage data and the amount applicable to a family or other household reflects the taxes paid on long-distance or bundled phone service by similarly sized families or households. Using this amount may be the easiest way for taxpayers to get their refunds and avoid gathering 41 months of old phone records.     Source: IRS.Gov