Treasury Announces End to Long-Distance Telephone Excise Tax
Tuesday, June 6th, 2006
Taxpayers will be able to apply for refunds on their 2006 tax forms, to be filed in 2007.
Key Facts Regarding Tax Refunds:
- No immediate action is required by taxpayers.
- Refunds will be a part of 2006 tax returns filed in 2007.
- Refund claims will cover all excise tax paid on long-distance service over the last three years (time allowed given statute of limitations). Interest will be paid on refunds.
- The IRS is working on a simplified method for individuals to use to claim a refund on their 2006 tax returns.
- Refunds will not include tax paid on local telephone service, which was not involved in the litigation.
- Originally established in 1898 as a “luxury” tax on wealthy Americans who owned telephones, the federal excise tax on telphone calls is not compatible with today’s modern information-age society.