Non-Profit Organizations and the Church may be due to a One-Time Telephone Tax Refund

This article has been provided the basis for the IRS.

According to the IRS, many churches, charities and other tax-exempt organizations a one-time telephone excise tax refund.

Nonprofits that are required to submit their annual fees, May 15, these benefits are encouraged to ask if they pay the Federal excise tax or a long distance bundled telephone service.

Telephone tax refund, as well as churches and small tax-exempt organizations generally do not need to submit an annual return with the IRS.

The government stopped collecting long-distance excise tax last August after several federal court decisions that the tax does not apply to long distance service because they are paid today. Federal officials also authorized a one-time return of 3 percent tax collected on long distance or bundled service billed after February 28, 2003 and before August 1, 2006. The fee will continue to apply only to local telephone service.

Organizations can apply for a refund of filing Form 990-T, Exempt Organization Business from corporate income tax return and attach Form 8913, the credit of the Federal Telephone excise tax paid. Organizations that receive a credit or refund from their service providers the right to request a refund with the IRS.

If your church or organization has paid the tax, the IRS provided guidance to help you understand the refund:

Start filling in the form 8913th This form is used to determine the refund, including interest. Current interest factors for corporations, including tax exempt organizations can be found in telephone excise tax refund page of IRS.gov.

You have two choices, to understand the refund. To substantiate their claim for the tax actually paid in 2003. In early March, late July 2006 billing service, using their phone bills or other documents, or to calculate the amount of tax paid in the form of instructions include a worksheet 8913th Specify the use of assessment worksheet can save time and paperwork, especially if you lack access to complete phone records over the past few years. If you file Form 990, return of organization exempt from income tax, the amount you entered on your phone bill on line 34 can help you figure the credit. Publication 4589, Ter-exempt organizations, helps to explain these calculations.

Carry the amount figured form 8913 form 990-T, line 44F. Follow the instructions to complete the remainder of the form 990-T. Typically used by organizations in the form 990-T to report business activities unrelated to their exempt purposes and activities of this figure fee. If you, like many organizations do not engage in outside business activities, you can simply fill in the upper section above Part I) Form 990-T. Be sure to write the query Ter Credit "form at the top.

Many mobile users mistakenly believe that they can not get the telephone tax refund. The refund is normally available to mobile users, as well as land lines, fax and internet users. The phone signal transmission does not affect the way of a refund.

The refund of federal excise tax paid on both long-distance and bundled telephone service. Installed service is local and long distance service provided under a plan that is not specifically listed in the cost of local services. Integrated services include, for example, phone plans that provide both local and long distance service, or a fixed monthly fee or a charge that varies with the service. This type of service for many mobile phone companies.