Long-Distance Telephone Tax Refund

In 2007, the IRS is processing a one-time only refund for long-distance telephone customers. This refund is available to anyone who used long-distance services between 2003 and 2006, whether or not they would otherwise file a tax return. The tax refund will normally range from $30-$60, depending on family size.

What is the Telephone Tax Refund?
A federal court recently decided that the excise tax long-distance phone companies had been charging from 2003-2006 was unjustified. Therefore, the IRS has announced that in 2007 it will refund an estimated $10 billion to long-distance phone users. The tax was collected by telephone companies through customer bills. Customers will now be able to file for a refund of these taxes.

Who Qualifies for this Refund?
All telephone customers who used long-distance phone services between March 1, 2003 and July 31, 2006 may qualify for this refund. The tax was automatically collected on the following services:

• Standard land-line telephones with long-distance service
• Cell phone service
• Internet long-distance calling plans (Voice-Over Internet Protocol)

Even if your plan did not distinguish between local and long-distance calls, you qualify for the refund. However, long-distance service through pre-paid telephone cards does not qualify for the refund.

How Do You Request a Refund?
The long-distance telephone tax refund can be requested with any 2006 federal tax form (1040, 1040A or 1040EZ). However, even if you would not otherwise file a federal tax return, you can still receive this refund.
Individuals who would not otherwise file a tax return can use the special short form, 1040EZ-T, "Request for Refund of Federal Telephone Excise Tax."
This form is not a tax return, however, and can only be used to request this telephone tax refund. These forms can be filed electronically or mailed to the IRS.
The IRS has calculated standard refund amounts based on the size of a family requesting the refund, or the number of exemptions the tax filer can claim:

• $30- one exemption (single person)
• $40- two exemptions (examples: filer with one child, married couple)
• $50- three exemptions (examples: filer with two children, married
  couple with one child)
• $60- four or more exemptions (examples: filer with three or more
  children, married couple with two or more children)

You may also request to have the exact amount of long-distance telephone tax you paid refunded by filing form 8913.