[Rhodes22-list] 2007 Tax Return

[brad haslett]

Good news folks.  The IRS threw in the towel on the 3%
Federal excise tax on long distance calls.  This tax
was started in 1898 during the Spanish-American war as
a "luxury tax" because only rich people had
telephones.  Think about this the next time you hear
the the "tax the rich" trumpet blow. It took what, a
108 years to correct this? Here's the US Treasury link
and the IRS and their press releases:

http://www.ustreas.gov/press/releases/js4287.htm

http://www.irs.gov/newsroom/article/0,,id=157706,00.html



May 25, 2006
js-4287

Treasury Announces End to Long-Distance Telephone
Excise Tax

WASHINGTON, DC – The U.S. Treasury Department today
announced it is conceding the legal dispute over the
federal excise tax on long-distance telephone service.
 The Department of Justice will no longer pursue
litigation and the Internal Revenue Service (IRS) will
issue refunds of tax on long-distance service for the
past three years. Taxpayers will be able to apply for
refunds on their 2006 tax forms, to be filed in 2007.

 Treasury Secretary John Snow states, "Today is a good
day for American taxpayers; it marks the beginning of
the end of an outdated, antiquated tax that has
survived a century beyond its original purpose, and by
now should have been ancient history.

 "The Federal Appeals courts have spoken across the
board.  It's time to `disconnect' this tax and put it
on the permanent `do not call' list.

 "In addition to ending the litigation, I would like
to call on Congress to terminate the remainder of this
antique tax by repealing the excise tax on local
service as well." 

 Key Facts Regarding Tax Refunds:

  No immediate action is required by taxpayers.  
Refunds will be a part of 2006 tax returns filed in
2007.  
Refund claims will cover all excise tax paid on
long-distance service over the last three years (time
allowed given statute of limitations). Interest will
be paid on refunds. 
The IRS is working on a simplified method for
individuals to use to claim a refund on their 2006 tax
returns.   
 Refunds will not include tax paid on local telephone
service, which was not involved in the litigation. 
Originally established in 1898 as a "luxury" tax on
wealthy Americans who owned telephones, the federal
excise tax on telephone calls is not compatible with
today's modern information-age society.


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