Don't Forget One Time Refund for the Telephone Excise Tax

Did you have long-distance telephone service between Feb. 28, 2003, and Aug. 1, 2006? If so, there is a good chance the government owes you money.

The Internal Revenue Service (IRS) is offering a one-time refund for the telephone excise tax, which the government used to collect on long-distance telephone service. Recent federal court decisions held that the three-percent tax, which began in 1898, no longer applies.

To make things simple, you can request a standard refund amount between $30 and $60 depending on your household. If you choose the standard amount, you only need to fill out one extra line on your tax return. Otherwise, you must determine your refund using the actual amount of taxes paid, which will involve gathering old phone bills and filling out an additional form. If you don't need to file a tax return, you still can get the refund by using a new simple Form 1040EZ-T.