Are there any new tax refunds available for this filing season?

IRS Announces Long-Distance Excise Tax Refund

The Internal Revenue Service (IRS) is offering a one-time refund to all telephone customers who paid excise tax on long-distance service after Feb. 28, 2003, and before Aug. 1, 2006. The refund is the result of recent federal court rulings that the 3-percent tax is no longer applicable to long-distance service as it is billed today.

Individuals can request the refund on their regular tax returns. If they don't have to file a tax return, they can use a newly created form to request their refunds. In addition, the IRS is providing a fast and simple option for any long-distance customer by offering a standard refund amount, between $30 and $60, based on the number of exemptions they claim. Refunds can be requested using Forms 1040, 1040A, 1040 EZ or 1040 NR, or by using new Form 1040EZ-T. These forms can be downloaded at IRS.gov or can be obtained by calling 1-800-TAX-FORM.

Long-distance telephone customers for whom it is more advantageous to request a refund using the actual amount of tax paid may do so by filling out Form 8913 and attaching it to their tax returns or Form 1040EZ-Ts.

Many post offices and local libraries will also have these forms available.

For additional information about the telephone excise tax refund, including Form 1040 EZ-T, visit IRS.gov.

Electronic Toolkit Available for Organizations

http://www.irstelephonetaxrefund.info

The purpose of this electronic toolkit is to provide background information about the refund of approximately $13 billion in telephone excise taxes to more than 159 million taxpayers this year.

In 1898, the federal government imposed a "luxury" tax on United States long-distance telephone users. In 2006, the United States Department of the Treasury determined that this tax is history. As a result, the IRS will issue a one-time payment that eligible taxpayers can request on their 2006 federal income tax returns. The refund gives back federal excise taxes paid in previous years.

Specifically, if you paid long distance charges on a land line, cell phone, Voice over Internet Protocol service, or bundled services, for which you received a bill at any time after Feb. 28, 2003, and before Aug. 1, 2006, you most likely paid the telephone excise tax and are eligible to request a refund.

This electronic toolkit contains valuable tools to use when communicating information about the telephone excise tax refund to low-income and elderly taxpayers, including a downloadable flyer, a drop-in newsletter article and other customizable materials. It also provides suggested outreach ideas your organization may implement to help spread the news about this important refund.

For additional information, visit IRS.gov. If you have questions about partnering with the IRS to assist in the dissemination of information about the refund, please e-mail partners@irs.gov.

Quick Facts About the Telephone Excise Tax Refund

• The federal government is offering a one-time refund to long-distance telephone customers who paid federal excise taxes on their long-distance service after Feb. 28, 2003, and before Aug. 1, 2006.
• The refund applies to taxes paid on any long-distance telephone service, including landline, cell phone or Voice over Internet Protocol (VoIP) services.
  
• More than 159 million businesses and individuals are eligible to request the telephone tax refund on their 2006 federal income tax returns. Millions of these long-distance customers are not required to file regular income tax returns but are still eligible for the refund.
  
• Individuals who are not normally required to file a regular federal income tax form may request a refund using Form 1040EZ-T.
  
• Long-distance customers who find it is more advantageous to request a refund using the actual amount of tax paid may do so by filling out Form 8913 and attaching it to their federal income tax returns or to Form 1040EZ-T.
  
• Eligible individuals can request a standard refund amount between $30 and $60 based on the number of exemptions they claim. This is the easiest way for people to get their refunds and avoid gathering 41 months of old phone bills.
  
• Individuals may opt for an exact refund and base their refund requests on the actual amount of taxes on long-distance service billed after Feb. 28, 2003, and before Aug. 1, 2006, using Form 8913. Federal access charges and state and local taxes charged are not included in the refund.
  
• An estimated $10 billion will be refunded to individual taxpayers through the telephone excise tax refund.
  
• Taxpayers who are filing a regular income tax return will not receive a separate check - the refund will either reduce the amount owed on their 2006 federal income tax returns, or increase their overall refunds.