The Internal Revenue Service announced a formula allowing businesses and tax-exempt organizations to estimate their federal telephone excise tax refunds.In May, the government announced that it would stop collecting the federal excise tax on long-distance telephone service beginning Aug. 1, 2006, and provide refunds for taxes billed after Feb. 28, 2003.

To request a refund, businesses (including sole proprietors, corporations and partnerships) and tax-exempt organizations must fill out Form 8913, “Credit for Federal Telephone Excise Tax Paid.” Organizations can either determine the actual amount of refundable long-distance telephone excise taxes they paid for the months from March 2003 through July 2006, or, instead of gathering 41 months of phone records, use a formula to calculate their refunds.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access