| The Telephone Excise Tax Refund (TETR) is a | | | | than 250 employees. |
| one-time payment available on your 2006 federal | | | | IRS provided this example of computing the Telephone |
| income tax return. It is designed to refund previously | | | | Excise Tax Refund (TETR): If a business has an April |
| collected long distance telephone taxes. Individuals, | | | | 2006 telephone bill of $1,000, which includes federal |
| businesses and tax-exempt organizations are eligible | | | | telephone excise tax of $28, the tax percentage is 2.8 |
| to request it. Over 159 million filers are eligible to | | | | percent. If the September 2006 bill is $1,100 including |
| request the refund. | | | | federal telephone excise tax of $16.50, the tax |
| Individuals taxpayers have a choice, they can take the | | | | percentage is 1.5 percent. The business' long-distance |
| standard refund amount between $30 to $60 (based | | | | excise tax percentage is 1.3 percent (2.8 percent for |
| upon their exemptions on their 2006 return OR they | | | | April minus 1.5 percent for September). The business |
| can locate old bills and use the actual amount. | | | | multiplies 1.3 percent by its total phone expenses over |
| Even if you don't have to file a return, you can still | | | | the 41-month period to arrive at the amount of its |
| request the refund. Details can be found at the IRS | | | | refund. If this business had more than 250 employees, |
| web site. | | | | its refund would be limited to 1 percent of its total |
| If you are filing a Schedule C, E, or F you may be | | | | phone expenses for the period. If the business had |
| eligible to use a special formula that reads like this: The | | | | 250 or fewer employees, the 2-percent cap would |
| refund is capped at 2 percent of the total telephone | | | | apply and would not limit the amount of the refund |
| expenses for businesses and tax-exempt | | | | This refund is the most wide-reaching in IRS history. |
| organizations with 250 or fewer employees (this | | | | For sure tax software companies are gearing up to |
| covers over 99 percent of all businesses in America). | | | | include this refund in the 2006 software programs. |
| The refund is capped at 1 percent for those with more | | | | |