Federal judges recently ruled that the 3% federal excise tax on long-distance phone service was illegal. You can go back and add up the federal excise tax on all your phone bills for 41 months, from March 1, 2003 to July 31, 2006. Note - this isn't just on traditional long distance phone charges, but also to that tax on bundled services, such as calling planes on your cell phone - doesn't matter if it's flat fee or per minute if local and long distance calls are added together. For some of us, that can be a lot of money. Claim this refund on your 2006 tax return byattaching Form 8913. Businesses can take an easier route - take the two monthly phone bills for April 2006 and September 2006 and use these to estimate the federal excise tax for the entire 41 month period.
Deduction for Federal Excise Tax on long-distance phone calls
2 comments • Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS • January 28 2007 06:06PMComments
I had not heard about this... thanks for sharing it, Sharon! It all adds up!
Great client tip, Sharon. Thanks.
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