The Telephone Excise Tax Refund (TETR) was a one-time payment available in US on tax year 2006 federal income tax return, for refunding excise taxes previously collected on long distance telephone services billed after Feb. 28, 2003, and before Aug. 1, 2006.
The federal telephone excise tax is an imposition on the amounts paid for certain telecommunication services. With the enactment of the Internal Revenue Code of 1954, telephone excise was charged on both local and long distance calls for the first time.
However since 2005 several federal courts held that telephone excise cannot be levied on long distance telephone calls. In compliance with those rulings, the Internal Revenue Service took the decision of refunding telephone excise charged on long distance telephone calls for the designated look back period of forty one months, as stated hereinafter. Those who had paid telephone excise on long distance service calls billed during the look back period commencing from 28th February, 2003 to 1st August, 2006 were eligible for the credit. In their federal income tax return for 2006, they can take credit for such wrongfully collected telephone excise.
A particular consumer may either use the actual or the standard amount for claiming credit depending on whichever mode gives him larger refund. Standard amount is a pre determined credit based on the number of exemptions claimed on the income tax return. The amount of credit is $30 for a taxpayer taking a single exemption on his tax return, $40 for two exemptions, $50 for three exemptions and maximum $60 for four or more exemptions.
Alternatively consumers may choose to itemize the deductions based on the actual amount of excise duty paid on telephone services for the look back period supported by relevant bills and payment vouchers.
Those who missed out to request for the refund on their tax return of 2006 may still claim the same by amending their original tax return.
(More:http://www.irs.gov/newsroom/article/0,,id=164032,00.html)
| 
