OKLAHOMA BUSINESSES DUE TAX REFUND FOR PHONE SERVICES

OKLAHOMA CITY–A century-old tax on long-distance and bundle services that was repealed in May 2006 may save Oklahoma business owners big bucks this tax season.

Individuals and businesses can file for a one-time refund/credit on their 2006 tax returns for excise taxes paid on long distance service or bundled service (wireless) billed after February 28, 2003 and before Aug. 1, 2006, when phone companies and cellular carriers stopped billing for the tax.

“Companies with more than 250 employees stand to benefit the most from this refund,” said Larry Treas, president of The Michael Group, an independent telecommunications consulting firm based in Bethany, Okla. “Most taxpayers can expect a refund around the cost of their average monthly long-distance and bundled (wireless) bill.”

The Internal Revenue Service is refunding approximately $15 billion to taxpayers nationwide who paid Federal Excise Taxes after courts ruled that the taxes are illegal.

Treas said organizations have two basic options when claiming the FET refund. The organization can seek the actual amount owed by enlisting the help of telecommunication experts. Or, the IRS has developed a formula organizations can use to seek an estimated amount, which will result in not receiving the full refund owed.

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.

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.

Founded in 1985, The Michael Group (www.michaelgroup.com) is an independent telecommunications consulting firm, dedicated to helping clients take control of their telecom spending through efficient management of voice, data and wireless services.

For more information, contact Larry Treas at (405) 721-8875 or toll-free at (800) 749-1331.

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