IRS Has a New Tax Refund, See if You Qualify (2006)
Individuals taxpayers have a choice, they can take the standard refund amount between $30 to $60 (based upon their exemptions on their 2006 return OR they can locate old bills and use the actual amount.
Even if you don't have to file a return, you can still request the refund. Details can be found at the IRS web site.
If you are filing a Schedule C, E, or F you may be eligible to use a special formula that reads like this: The refund is capped at 2 percent of the total telephone expenses for businesses and tax-exempt organizations with 250 or fewer employees (this covers over 99 percent of all businesses in America). The refund is capped at 1 percent for those with more than 250 employees.
IRS provided this example of computing the Telephone Excise Tax Refund (TETR): If a business has an April 2006 telephone bill of $1,000, which includes federal telephone excise tax of $28, the tax percentage is 2.8 percent. If the September 2006 bill is $1,100 including federal telephone excise tax of $16.50, the tax percentage is 1.5 percent. The business' long-distance excise tax percentage is 1.3 percent (2.8 percent for April minus 1.5 percent for September). The business multiplies 1.3 percent by its total phone expenses over the 41-month period to arrive at the amount of its refund. If this business had more than 250 employees, its refund would be limited to 1 percent of its total phone expenses for the period. If the business had 250 or fewer employees, the 2-percent cap would apply and would not limit the amount of the refund
This refund is the most wide-reaching in IRS history. For sure tax software companies are gearing up to include this refund in the 2006 software programs. For those choosing the standard method to compute this refund, there will be an additional line right on your 2006 tax return for the refund
Related Tags: how to, tax, irs, 2006, refund, tetr, telephone excise tax
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