Federal Telephone Excise Tax Refund

What is a federal telephone excise tax?
A tax paid to the IRS for certain "communications services" that began in 1898 to finance the Spanish-American War.

What is the federal telephone excise tax refund?
A one-time payment available on taxpayers’ 2006 federal income tax return. It is designed to refund previously collected long-distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it.

Who can receive a refund?
Anyone who paid federal excise taxes on long-distance and bundle services between March 1, 2003 and Aug. 1, 2006.

When is the deadline?
The deadline to file for this one-time opportunity depends upon an organizations fiscal tax year. For some, it is March 15, 2007 unless extensions from the IRS are given.

How can an individual taxpayer get a refund?
Individual taxpayers also have the option to seek a standard amount between $30 and $60, based on the total number of exemptions on their tax return or receive their actual amount owed by looking over each month’s bill in the refund period.

How can an organization get a refund?
Organizations can seek the actual amount owed by enlisting the help of telecommunication experts. Or the organization can seek an estimated amount by using a formula the IRS has developed, which will result in not receiving the full amount owed.

How much can taxpayers expect as a refund?
Most taxpayers can expect a refund greater than or equal to the cost of their average monthly long-distance bill.

The Michael Group

Who is The Michael Group?
The Michael Group is an independent telecom consulting firm, dedicated to helping clients take control of their telecom spending through efficient management of Voice, Data and Wireless Services. The Michael Group has been in business for over 20 years and is located in Bethany, Okla.

What does The Michael Group do?
The Michael Group is a group of three consultants who develop, oversee and serve as quality control for telecommunications initiatives for their clients. They look at a client’s current telecommunications setup and determine the best way to consolidate those efforts to save the client’s money by evaluating the most cost-effective rates and terms offered.

Source: The Michael Group & www.irs.gov

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