Posts Tagged ‘Telephone Tax Refund’
In a recent decision, a federal court overturned a phone tax has been charged for a years now. Considering the result, the IRS has decided to issue refunds for past collected taxes.
In 1898, the federal government passed a law assessing taxes on the use of long distance telephone in the United States. The tax is so fairly small, ranging from one to three percent, which was never questioned. The year you passed, that changed. The tax was challenged in court and found to be invalid. After some problems, the IRS agreed to stop collecting taxes. They even agree to issue refunds to some of the taxes collected.
Given the fact the 1898 law covers only a short time, the question of the telephone tax refund is potentially complicated. In short, how do you find out how much tax you have paid on telephone bills for this assessment through the years? In one to three percent, the truth is that not much. Also, how do you prove payment of taxes if audited? Anyone have phone bills from 1898? Probably not. Indeed, the amount of the refund only look back 41 months, but you get the idea.
To overcome these problems, the IRS proposes a flat reimbursement rate for taxpayers. The amount of the refund is proposed is $ 30 to $ 60 depending on specific characteristics. More importantly, the taxpayers are not required to dig through old phone bills to justify the deduction. To claim the tax refund, you must fill in an area not yet declared in his 2006 tax return. To be clear, this is the return to be submitted in April 2007.
So, how to find out how much you can claim as a refund? The amount of the refund shall be bound in the number of exemptions you claim. The amounts are $ 30 for a person filing an exemption, $ 40 for two exemptions, $ 50 for three exemptions and $ 60 for four or more exemptions. If you are single and claim an exemption, the refund amount will be $ 30. If you want to access through their phone bills and claim the exact amount of taxes you paid as a refund, you also have this option.