Excise tax on Long Distance
Just FYI, the IRS has given up on collecting excise tax on long distance service. In fact, taxpayers can get a refund of all the taxes paid during the 41-month period ended 7/31/06.
Rather than use actual taxes paid (which is an option), individuals can take a credit based on number of exemptions. Businesses can estimate the credit based on the difference in excise tax rates between the April '06 phone bill (which has the excise tax) and September '06 (which does not have the tax) and applying this to the total phone expense during the period.
The credit is reported on new IRS form 8913 which is attached to the return. The form looks incomplete to me and thus far there are no instructions.
This is a pretty small deal for individuals, but could be significant for businesses that have high long distance bills.
Re: Excise tax on Long Distance
Sixty dollars for a family of four is sixty dollars. It is not often the IRS will give you money for filing your return.