Phone Service Tax Refund Available for 2006
The United States’ telephone excise tax was established in 1898 as a luxury tax to help fund the Spanish–American War. It’s been a very long time since we were fighting with Spain or phone service was a luxury item, and the IRS has finally caught up with the present.
The phone tax is being abolished in the new year, and American tax payers are eligible for a refund of their last three years of tax payments. If you’ve used traditional, cellular, or VOIP phone service in the last three years, you’ve got some money coming to you from Uncle Sam.
Here’s the catch: you only have one chance to claim this refund, by filing some special information with your 2006 tax return. Phone tax payments are rolled into your phone bill — much like how sales tax is paid at the same time you buy a candy bar or bag of grapes — so you’ll need copies of your last three years of phone bills to get the best refund. If you don’t have or can’t get those records, then you’ll have to make do with the IRS’s standard refund based on your number of exemptions.
The IRS has a FAQ on its website that gives basic instructions on how to claim your refund. More specific guides are also available for businesses and individuals.
(Props: Dallas Morning News)


