This one kind of flew under the radar last week, but the U.S. Treasury Department repealed the 108-year-old 3% Federal Excise Tax, which means that refunds can be claimed by taxpayers on their 2006 tax forms (in 2007) for long-distance calls that they placed on both their landline as well as wireless phones. According to the Treasury Department:
- No immediate action is required by taxpayers.
- Refunds will be a part of 2006 tax returns filed in 2007.
- Refund claims will cover all excise tax paid on long-distance service over the last three years (time allowed given statute of limitations). Interest will be paid on refunds.
- The IRS is working on a simplified method for individuals to use to claim a refund on their 2006 tax returns.
- Refunds will not include tax paid on local telephone service, which was not involved in the litigation.
Now, of course, none of us should expect any kind of windfall refund from this repeal of the Excise Tax. However, for those of us who do place a lot of long-distance calls, we will be able to realize decent savings over the next few months.
