Are businesses required to dig through all their old phone records to figure their telephone tax refund?
No. The IRS has developed a formula that most businesses and tax-exempt organizations can use to figure their refund. To use the formula, eligible taxpayers need only review their phone bills for 2 months (April and September 2006 bills), instead of all 41 months included in the refund period. In addition, eligible taxpayers need to know the number of employees reported on their federal withholding tax return (Form 941, Employer’s Quarterly Federal Tax Return) for the second quarter of 2006 and their total telephone expenses for the 41-month period. Total telephone expenses means all amounts paid to every telecommunications provider used by the eligible entity for telephone service that were billed after February 28, 2003, and before August 1, 2006. These amounts include, but are not limited to, amounts paid for long distance service, local-only service, bundled service, 900 number service, universal service fees, federal, state, and local taxes. If an eligible entity is billed for tel
