Irs Owes You Money If You Paid Long Distance Phone Taxes

IRS Owes you​ Money If you​ Paid Long Distance Phone Taxes
The IRS has decided to​ give up the​ fight on​ an​ ongoing legal issue regarding taxes it​ has collected on​ long distance telephone services .​
Here is​ the​ scoop .​
The IRS Owes you​ Money If you​ Have Paid Long Distance Phone Taxes
Every one of​ us pays for some form of​ long distance telephone service .​
The more you​ use the​ service,​ the​ more you​ start hunting for better rates .​
Whatever choice you​ make,​ however,​ you​ are always stuck paying a​ federal tax on​ the​ bill .​
For those of​ you​ with large long distance phone bills,​ this tax can add up quickly given the​ fact it​ is​ calculated at​ three percent of​ your total bill .​
The tax in​ question is​ known as​ the​ federal excise tax on​ long distance telephone service .​
It was created in​ 1898 .​
Yes,​ this tax arose well over one hundred years ago .​
As you​ might image,​ a​ few people started to​ wonder how a​ tax established in​ 1898 could possibly apply today,​ particularly given the​ advancement of​ telephone technologies .​
Turns out it​ doesn’t apply! Given a​ chance to​ review the​ situation,​ five appellate courts have ruled the​ tax invalid .​
After contemplating the​ situation,​ the​ IRS has decided not to​ challenge the​ legal rulings .​
Instead,​ it​ has voluntarily agreed to​ issue credits or​ refunds for the​ excise taxes paid the​ past three years .​
Specifically,​ you​ will be able to​ claim a​ refund of​ all taxes paid from February 28,​ 2003 till the​ date the​ IRS stopped collecting them .​

To collect the​ refunds,​ the​ IRS will create a​ new box on​ all 1040 filing forms for the​ 2018 tax year .​
In practical terms,​ this means you​ will be able to​ check a​ box and get a​ refund when you​ prepare your 2018 tax return in​ 2018 .​
The IRS will pay interest on​ these funds .​

It should be noted the​ refund is​ applicable only to​ the​ long distance excise tax .​
You still must pay local service taxes and the​ refund does not apply to​ taxes collected by states and such .​
Still,​ any refund is​ a​ good refund in​ my opinion.
Irs Owes You Money If You Paid Long Distance Phone Taxes Irs Owes You Money If You Paid Long Distance Phone Taxes Reviewed by Henda Yesti on June 23, 2018 Rating: 5

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