US IRS sets refund for individuals from phone tax ($30! We're Rich! Rich!)

[UpInArms]

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-08-31T205504Z_01_N31373189_RTRIDST_0_FINANCIAL-TAXES-TELECOM.XML

WASHINGTON, Aug 31 (Reuters) - Long-distance telephone customers can receive refunds of between $30 and $60 on their 2006 taxes to reimburse them for a now defunct telephone tax, the U.S. Internal Revenue Service said on Thursday.

The U.S. Treasury Department in May announced it would end its legal fight to keep a 3 percent federal excise tax on long-distance telephone service that dates back to 1898, when a luxury tax on wealthy Americans who owned telephones was imposed to help finance the Spanish-American war.

The government had appealed in U.S. courts to keep the tax but was turned back several times.

About $10 billion is expected to be refunded to individuals, according to IRS spokesman Eric Smith. They will receive the refund by filling in an additional line on their regular 2006 tax returns, which are usually filed in 2007.

Under the plan outlined by the IRS, an individual who claims one exemption would be entitled to a $30 refund; two exemptions would receive $40; three exemptions would get $50; and four exemptions would receive $60.

"These amounts save taxpayers from locating 41 months of old phone bills and analyzing these bills to determine the taxes paid," IRS Commissioner Mark Everson said in a statement. "We believe the standard amounts are both reasonable and fair."

...more...

[warrens]

1. Teenager in house -- $60

As anyone who has one knows, just TRY to get near the phone.

[MissWaverly]

2. they're artful dodgers

since they probably charged cell phone users as well, I remember before I discontinued my
contract, that it had gone from $19.00 to $28.00 dollars. So they charge everybody double
then only give 1 refund, HAH!

[Sherman A1]

3. They may believe the amounts are reasonable

but, this tax was collected from 1898? I would think a bit more than $30.00 should be due, but hey we have spent every dime we have in Iraq and tax cuts for the wealthy so I guess this is as good as it gets! Let's think long term mutual funds or perhaps a nice vacation?