Exise Tax Refund

[Gretel]

I am confused again. In the phone forum we were told to not take internet, equipment lease and other expenses charges on a phone bill into account for total phone expenses.

Now, IRS released "Revised Notice 2007-11". If I understand correctly than taxpayer is obligated to seperate these other expenses only if already separated on books, right???

[Brad Imsdahl]

I am confused again. In the phone forum we were told to not take internet, equipment lease and other expenses charges on a phone bill into account for total phone expenses.

Now, IRS released "Revised Notice 2007-11". If I understand correctly than taxpayer is obligated to seperate these other expenses only if already separated on books, right???

What do any of those expenses have to do with the long distance excise tax? You only get to count the tax and interest under the actual expense method. Nothing more.

[Gretel]

I guess I was not very clear. I didn't mean the actual method I meant the "Alternative Formula" where the first thing that needs to be determined is the total phone expenses. Then you apply the % whatever that is.

So, if I have internet and advertising on my phone bill but posted everything to my phone expenses, I understand the notice to say I still can use all of the expenses and apply my %.

[JON]

If you include

internet and other expenses in the April and Sept 06 amounts that will take your per centage down that will be used times the amounts (from tax returns-pro rated for 03 and 06) with should be an offset. Not a perfect method, but you per centage probably is always going to be around 1% give or take a little (alternative method). I think they came out with 2007-11 to give a quicker way of computing.

Remember this all came about when large companies were sueing the government for their refunds of hundreds of thousands of dollars.

[Joe Btfsplk]

April and Sept phone bills

A client just sent his Apr and Sept phone bills and excise tax figures to me. On one of his corporations the Sept excise tax percent was greater than the Apr percent which would give him a negative deduction. I think he may have used the wrong phone bills--or made no long-distance calls in April. I asked him to check October (which is probably the month he paid the Sept bill).