IRS announces that long-distance telephone tax refunds will
be part of 2006 federal form 1040
In May 2006 the IRS announced that it will stop collecting the federal excise tax on long-distance
telephone service. Taxpayers will be eligible to claim a refund of all excise tax thay have paid
on long-distance service billed to them after February 28, 2003.
Individuals will claim this refund on their 2006 Federal tax return. They can either choose to calculate
the tax that they paid between Feb. 28, 2003 and August 1, 2006 or elect to use standard amounts, which
range between $30 and $60.
The standard amounts are based on the total number of exemptions claimed on the tax return. They are $30
for a single person filing a return with one exemption, $40 for a return with 2 exemptions,
$50 for three exemptions and $60 for four or more exemptions.
If you failed to take this credit on your 2006 return, you can still get it by filing an amended return before April 15, 2010.
Tax payers who are not required to file a federal income tax return may claim the refund using form 1040EZ-T.
New law requires documentation of cash charitable contributions
Taxpayers will be denied a deduction unless they maintain a record of the contribution in the form of a bank record, cancelled
check or letter from the donee.
New energy credits available to taxpayers in 2006
The energy bill of 2005 provides a new personal tax credit for individuals who purchase certain
energy-efficient property for their home. learn more
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