Ron Todd <rltodd[at]ix.netcom.nospam.com> wrote:
- quote -

I believe you'll find that the IRS is an agency of the
executive branch of the government.

--
D.F. Manno | dfmanno[at]mail.com
Now this is not the end. It is not even the beginning of the
end. But it is, perhaps, the end of the beginning. * Winston
Churchill

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- quote -

I wonder how the tax houses would price this. Seems like it
would take at least $30 of work to fill out a 1040EZ-T for a
new client.

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My wife and I have a zero income adult dependent son who
does not live with us. We provide all of his funding while
he is writing the next "Great American Novel". He has had a
telephone for the designated time period (all as our
dependent) and has paid the bills from the funds given him.

In applying for the refund, should we include him as a
dependent and claim $50 or file for $40 for the two of us
and have him file separately for $30? The $20 difference is
of no importance; I just want to do it correctly. Or would
either way be correct?

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- quote -

If the client is not required to file, they can just file a
very simple one-page form, 1040EZ-T, to get the telephone
tax refund. This form can be e-filed if your software
supports doing so.

The DRAFT Form 1040EZ-T is at the following link as of
11/23/06.
http://www.irs.gov/pub/irs-dft/f1040ezt--dft.pdf

Bob Sandler

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Ian Pilcher wrote:
- quote -

There is provision for it on the 1040 form, line 71. Credit
is between 30 and 60$ depending on # of exemptions (1 - 4).

Now let's see how they take care of the problem for form
1120S. It should of course be a pass through credit on the
K-1. The kicker however will be recognition of the credit
as income for 2007.

ChEAr$,
Harlan Lunsford, EA n LA

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Ian Pilcher wrote:
- quote -

A simple search for "telephone tax refund" at IRS.gov
reveals the following Q&A:

"What forms do I file to request the refund?

"For many individual taxpayers who want to take the standard
amount, there are no additional forms to file, and they only
need to fill out one additional line on their regular
income-tax return.

"Individuals choosing the standard amount can simply fill in
the amount on Form 1040, Form 1040A, Form 1040NR or Form
1040EZ. People who don't need to file a return can use a
new, simple form (Form 1040EZ-T) to choose the standard
amount."

I presume that the instructions for each form will designate
where to enter it.

For the tax preparers among us, the IRS.gov home page
describes a formula that can be used by organizations and
businesses.

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"Herb Smith" <smithff33[at]aol.com> wrote:

- quote -

We had this situation when I did VITA returns in Kansas
because of a couple of refundable state credits.

--
Phil Marti
Clarksburg, MD

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Ian Pilcher wrote:
- quote -

Line 71

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Mark Bole wrote:

- quote -


BTW, does anyone know how to actually get the refund? I
looked over the 2006 1040, and I didn't see anything
obvious.

--
================================================== ===========
Ian Pilcher i.pilcher[at]comcast.net
================================================== ===========

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rick++ wrote:

- quote -

FWIW, the paperwork has already been changed. See Line 71 of
your 2006 1040 form. Note that this is a REFUNDABLE credit,
so a lot more people could be filing (that don't otherwise
have a tax liability) than previously.

I work at a TaxAide site during the season, so expect to
file a LOT more returns - merely to claim this refund for
the taxpayer. Many of our clients do not have a tax
liability and usually just have their taxes reviewed for
peace-of-mind. Normally, just filling out a 9452 form is
enough, but now I expect to file many more 1040's (as
eFiles) instead.

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D.F. Manno <dommanno[at]yahoo.com> wrote:
- quote -

They admit it's mine, they just say I owe it to them.

Is your rent money yours or your landlord's? Until you pay
rent, it's yours.

Seth

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- quote -

No, there was a 10% tax on phone bills in the early 1970's.
I distinctly remember having a major fight with the phone
company when my bill came to $9.80 and they added $.99 tax
(and refused to explain their arithmetic).

Seth

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Seth Breidbart wrote:
- quote -

Are you confusing this telephone excise tax with the
temporary 10% marginal rate on income during several years
of the Vietnam war?

Look at this link which capsules the amount of tax raised
each year:

http://www.findarticles.com/p/articl...19/ai_70209309

The 10% income tax surcharge went away when not needed, but
you see from this yearly table the receipts from the 3%
excise tax just kept on growing.

ChEAr$,
Harlan Lunsford, EA n LA
who didn't get a break from paying the 10% even though it
went to paying my salary!

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D.F. Manno" <dfmanno[at]mail.com> wrote:
- quote -

Clarification. Specifically "The Congress" not generally
"the government."

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sethb[at]panix.com (Seth Breidbart) wrote:

- quote -

I think you'll find that the government has a very different
idea of _whose_ money it is, especially if you try to hold
on to "your" money.

--
D.F. Manno | dfmanno[at]mail.com
Now this is not the end. It is not even the beginning of the
end. But it is, perhaps, the end of the beginning.
- Winston Churchill

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rick++ wrote:

- quote -

The paperwork has already been changed. What's your point
-- that the refund isn't worth claiming?

- quote -

I'm sure you meant to say:

one exemption, the standard refund amount is: $30
two exemptions, the standard refund amount is: $40
three exemptions, the standard refund amount is: $50
four exemptions or more, the standard refund amount is: $60

-Mark Bole

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rick++ <rick303[at]hotmail.com> wrote:

- quote -

It grew to 10% to support the Vietnam War, and was then set
to decrease 1% per year until it hit 0. When it reached 3%,
the government decided to stop letting people keep their
money and made it stay there.

Seth

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In 1898 Congress passed a one percent luxury tax on the new
rich people's gizmo called the telephone to finance the
Spanish-American War. (where the US acquired Cuba,
Phillipines, Puerto Rico, etc.) It grew to 3% on several
telephone services(*) until partially repealed in May.

As part of the repeal, Congress authorized a refund of $30
to $60 per household(**). Businesses get a refund of three
years of telephone receipts.

Can't complain about another tax handout. But this one is
so small it seems like its cost more than that to change the
paperwork.

(*) In the fine print on your phone bill its the 3% federal
excise tax.

(**) Assumes the average taxpayer paid $1000 non-local
telephone bills over past three years. Each additional
dependent adds $333.

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