You may wonder why this question is important; the reason I ask is because there may be considerable tax refunds in your prior phone bills that you have yet to discover.  What am I talking about?  I wrote in the last blog post about how we, at C & I, can help you take advantage of available tax refunds from the IRS per Notice 2006-50 (coverage).  Today I would like to talk about this on a practical level.

The telephone tax was instituted in 1898 to fund the Spanish American War. In 2006, after multiple lawsuits, the Treasury Department conceded that it was time to put the war behind us and refund all taxes that were collected within the statute of limitations.

On May 10, 2005 The American Bankers Insurance Group won an important victory in the fight against the telephone excise tax, when the United States Court of Appeals for the Eleventh Circuit reversed the decision of the United States District Court for the Southern District of Florida, which had held that the services that ABIG purchased from AT&T were taxable.

This was one of several U.S. Court of Appeals cases that the IRS lost on the same issue. The IRS withdrew only after losing several of such cases and winning none (at the Appeals level or higher). The government has now set aside 6 billion dollars for those that submit for a refund. 6 billion dollars! We here at C & I Tax can help you receive refunds for phone bills dated between 2003-2006. Also, keep in mind that it is not only a refund for what you have paid in this governmental fees but refunds with compounded interest!

To find out if you can take advantage of these new tax credits, contact us directly by clicking here.

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This entry was posted on Friday, October 31st, 2008 at 8:33 am and is filed under Tax News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.