The Internal Revenue Service last week announced additional details regarding the process that consumers will use to get their Federal Excise Tax (FET) refund. Thanks to a recent court order, the IRS has agreed to stop collecting the Spanish-American War-era tax and will provide refunds to consumers. Individual taxpayers will be entitled to a $30-$60 refund on their 2006 tax return, depending on the number of exemptions claimed. The refund amounts are $30 for a person filing a return with one exemption, $40 for two exemptions, $50 for three exemptions and $60 for four or more exemptions. For example, a married couple filing a joint return with two dependent children (for a total of four exemptions) will be eligible for the maximum standard amount of $60. There will be an additional line on the regular 2006 return form to allow filers to apply for the refund. The IRS is creating a special short form (Form 1040EZ-T) for those who don’t need to file a regular return. Individuals can also choose to figure their refund using the actual amount of FET paid, but that will likely require taxpayers to consult 41 months worth of phone bills.
Source: Telecommunications Research and Action Center. http://www.trac.org
