Early tax filing indicates some taxpayers are grossly over inflating their Telephone Tax Excise Refund, while others haven't claimed a refund at all, according to an IRS report.
The confusion suggests not everyone is aware of the simplified formula to help individuals, businesses, and nonprofit organizations estimate the excise tax they paid on long distance service between March 2003 and July 2006.
"For most organizations, (except those with very substantial long distance charges), the IRS formula is the practical method to claim a refund of the federal excise tax," states Terry O'Reilly, health care tax principal.
The one-time tax refund must be claimed on 2006 tax returns.
For more information contact your LarsonAllen representative.
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