March 2007: Business Tools
TAX ADVICE
Calling all businesses: You could get a phone tax refund
As tax season approaches it can feel as though Uncle Sam lives
to take money. But every once in a while, he gives a little
back.
Businesses are eligible for a federal excise tax refund on
their long-distance and bundled telephone services dated from
March 1, 2003, through July 2006. Landline, wireless or
voice-over IP long-distance services all qualify for
refunds.
Haven’t heard of this before? That could be because this
is a one-time refund that has to be claimed on 2006 income tax
returns, says Scott Remington, a tax partner at the Portland
office of Grant Thornton, an accounting, business and tax
advisory firm.
“Unlike a lot of tax ideas,” he says, “this
has more widespread applicability.”
Business entities such as corporations, trusts and nonprofits
can request the telephone tax refund. Remington says the claims
process is straightforward: Businesses can either sift through
their records from the past 41 months or use a formula on the
Internal Revenue Service website that can estimate the amount
of refunds an organization is entitled to.
“At a minimum, if they have the resources, companies
should adopt the shorter method,” says Remington.
No matter which process an organization chooses to use, Form
8913 must be completed or a company risks losing out on this
refund opportunity. Companies should include the form with
their filed 2006 return. The IRS estimates about $10 billion in
phone tax refunds will be made by the end of the tax
season.
For more information and to find Form 8913, go to the IRS
website at http://www.irs.gov/newsroom.
— Colleen
Moran
Have an opinion? E-mail feedback@oregonbusiness.com
