Telephone Tax Refund for Business & Tax-Exempts

[TAX]

Businesses and Tax-Exempts Can Use Formula for Telephone Tax Refund

IR-2006-179, Nov. 16, 2006

WASHINGTON — The Internal Revenue Service today announced a formula that will allow businesses and tax-exempt organizations to estimate their federal telephone excise tax refunds.

Here is the link: http://www.irs.gov/newsroom/article/...164305,00.html

[Black Bart]

jainen

See? I told you they weren't going to look up all that junk and cross-check it.

[Jiggers]

Telephone refund

Don't forget that if the Schedule C, E, F, 1065, 1120, 1120S get a refund because of this, that you have to report it as income.

And, small businesses will probably get back just a few bucks, and you will end up charging them big bucks to do this! And, then they have to pay tax on this refund!

Isn't this a great country that we live in!

[Black Bart]

Never mind

Don't forget that if the Schedule C, E, F, 1065, 1120, 1120S get a refund because of this, that you have to report it as income.

I think I'm just going to ignore that -- I'm still havin' problems after all these years trying to explain to people how they could possibly owe tax on a state refund.

[Roland Slugg]

A few side issues

Apparently each partnership and S corporation will receive its own refund and not have to pass the credit amount through to its partners/shareholder(s) via Schedules K-1. Even without that complication an individual could conceivably have a credit/refund due from all of the following:

• His personal phone bill, $30 to $60 depending on the number of exemptions
• A business (ScheduleC)
• A farm (ScheduleF)
• Rental property (Schedule E)

The IRS recently released a draft of new F-8913, but it doesn't appear to contemplate all these different sources of credits. Nor does it allow for the simplified method of computing either the individual credit or the various business credits.

Perhaps the IRS will allow, or require, more than one F-8913 to be attached to a personal return. It will interesting to see if and how F-8913 is revised to incorporate all these possibilities.

[jainen]

sounds reasonable

>>it doesn't appear to contemplate all these different sources of credits<<

According to the IRS press release at http://www.irs.gov/newsroom/article/...164305,00.html

"they can use the standard amounts which cover both personal and business expenses, they can use the formula for their business expenses and actual for their personal ones, or they can choose to use actual amounts for both business and personal."

In other words, an individual can take advantage of the standard credit or calculate a higher one. That sounds reasonable.