Special one-time federal excise tax credit in 2006 rebates tax overpayment on phone bills.

[genieroze]

Special one-time federal excise tax credit in 2006 rebates tax overpayment on phone bills



Credit Where Credit Is Due

Claim: Special one-time federal excise tax credit in 2006 rebates tax overpayment on phone bills.

Status: True.

Example:

SPECIAL ONE TIME TAX CREDIT ON YOUR 2006 TAX RETURN

When it comes time to prepare and file your 2006 tax return, make sure you don't overlook the "federal excise tax refund credit." You claim the credit on line 71 of your form 1040. A similar line will be available if you file the short form 1040A. If you have family or friends who no longer file a tax return AND they have their own land phone in their home and have been paying a phone bill for years, make sure they know about this form 1040EZ-T.

What is this all about? Well the federal excise tax has been charged to you on your phone bill for years. It is an old tax that was assessed on your toll calls based on how far the call was being made and how much time you talked on that call. When phone companies began to offer flat fee phone service, challenges to the excise tax ended up in federal courts in several districts of the country. The challenges pointed out that flat fee/rate phone service had nothing to do with the distance and the length of the phone call. Therefore, the excise tax should/could not be assessed.

The IRS has now conceded this argument. Phone companies have been given notice to stop assessing the federal excise tax as of Aug 30, 2006. You will most likely see the tax on your September cutoff statement, but it should NOT be on your October bill.

But the challengers of the old law also demanded restitution. So the IRS has announced that a one time credit will be available when you and I file our 2006 tax return as I explained above. However, the IRS also established limits on how BIG a credit you can get. Here 's how it works.




more info
http://www.snopes.com/business/taxes/excise.asp

[ComerPerro]

1. this is one spam email forward that actually seems to be true, kick

[genieroze]

2. My husband received this in a email from his boss.

Sixty bucks is better than nothing. If the price of petrol keeps going up it will get hubby and I a tank each.

[genieroze]

3. Kick so people can see this

[AzDar]

4. Kick! n/t

[AzDar]

5. Lemme kick this again... good info! n/t