Irs Owes You Money If You Paid Long Distance Phone Taxes

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.

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