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IRS Announces Standard Amounts for Individual Refunds on the discontinued Telephone Federal Excise Tax (FET)

Three months after the United States Department of Treasury announced that they would no longer collect the Federal Excise Tax (FET) on Long-Distance telephone calls, the IRS announced the Standard Amounts that Individuals will be able to request. The standard amounts will enable individual taxpayers to not have to dig through old phone bills back to March of 2003.

The Standard amount will be determined by the total number of exemptions. For one exemption the standard amount will be $30, for 2 it’s $40. If you claim 3 then the amount will be $50.00 and any above 3 will be at $60.00.

The refund will be part of the 2006 tax filing. On the form there will be an added line where you can enter the amount. For those who are not required to file a regular form a special form will be created to claim this refund, Form 1040EZ-T.

In the press release IRS Commissioner Mark W. Everson is quoted. “The easiest way for eligible taxpayers to get their money back is to use the standard amounts. These amounts save taxpayers from locating 41 months of old phone bills and analyzing these bills to determine the taxes paid. We believe the standard amounts are both reasonable and fair.”

Business and Non-Profits will not be able to use these amounts. They must base their refunds on the actual amount paid. However according to the press release they are still looking for ways to make the refund easier for them.

You can find the entire press release at http://www.irs.gov/newsroom/article/0,,id=161504,00.html

A Telephone Refund Question and Answer page from the IRS can be found at http://www.irs.gov/newsroom/article/0,,id=161506,00.html

Reminder the FET refund only applies to the long-distance charges including long-distance on cell phones. FET charges will continue to apply to local-only service. The government is estimating that the total amount t be refunded will be about $10 million.

© 2006 Steven G. Atkinson – All rights reserved – tt4sb.com

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