The FCC gives back money it shouldn’t have taken in the first place.

By: Michael S Schmidt

Many taxpayers took the One-Time Tax Refund 2006 that was available as one-time credit when filing your 2006 taxes. It was implemented in order to reimburse consumers for excise taxes that were billed between February 28, 2003 and April 1, 2006. These taxes were paid on long distance services. Most consumers that used either regular phone service or cell phone service were eligible for the tax refund. In excess of 70 percent of the consumers that qualified for the refund claimed it when filing their 2006 tax form.

If you were not among the 70 percent of taxpayers that already claimed your refund on the prior tax return, it would be necessary to file an amended 2006 tax return. You can file an amended return by using Form 1040X which is available on the IRS website. If you failed to request the refund, you are not allowed to include it on your 2007 tax return. In the event you have not yet filed for 2006, you can make the request for the one-time tax refund 2006 when completing a late 2006 tax return.

If you are using the service of a professional that prepares your tax return, be watchful for false claims that you are eligible to receive hundreds of dollars by using this deduction. The refund request of the excise tax paid should not be in excess of three percent of your phone bill. This provision applies to both long distance and any bundled service plans that were billed after February 28, 2003. Unethical tax preparers may convince you to file an amended 2006 tax form with the promise of a substantial refund. Your phone bills would have to be very large in order to receive such a large refund.

In an effort to make claiming the refund easier, the IRS gives taxpayers that had phone service during the eligible time frame the option of a standard deduction. The standard amount ranges from $30-$60 and is determined by the number of exemptions claimed on your return. The standard amount is of course optional. You may claim the actual amount that you were taxed, but you must have the phone records to back up your claim.

If you are unsure if you are eligible for the One-Time Tax Refund 2006 or have any additional, you can find more information on the IRS website.