Answers to FAQs

Federal Excise Telephone Tax

1. What is the Federal Excise Telephone Tax Refund?
2. Am I entitled to a refund?
3. How do I request a refund - Individuals?
4. How was the standard refund amount for individual taxpayers calculated?
5. What is the standard refund amount for individual taxpayers?
6. Do I need copies of past telephone bills if I request the standard refund amount for individual taxpayers?
7. How do I request my refund – Businesses, Non-profit Organizations?
8. Who issues the Federal Excise Telephone Tax Refund?
9. How do I decide whether it’s better for me to itemize or request the standard amount?
10. How can I obtain copies of past telephone bills if I decide to itemize?
11. Where can I get additional information about the Federal Excise Telephone Tax Refund?
12. How can I contact Verizon Wireless?

1. What is the Federal Excise Telephone Tax Refund?
   The telephone tax refund is a one-time payment available on your 2006 federal income tax return, designed to refund the federal excise taxes charged on voice calls. It is available to anyone who purchased cell phone service, Voice over Internet Protocol (VoIP), or long-distance service on landline phones. However, the telephone tax on landline “local-only” service is not eligible for a refund.
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2. Am I entitled to a refund?
   In general, any individual, business, or nonprofit organization, which paid federal excise tax on long distance or wireless bundled service, is eligible for the telephone tax refund, and can receive it for service billed after February 28, 2003 and before August 1, 2006.
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3. How do I request a refund - Individuals?
   The IRS is making it easier for individual taxpayers to request the telephone tax refund by offering a standard refund amount of between $30 and $60. Individual taxpayers who choose the standard refund amount won't need to gather past phone bills, they will only need to complete one line on their tax returns. Individual taxpayers who decide not to request the standard refund amount must figure their refund using the actual amount of tax paid during the applicable time-period. To choose this option, individual taxpayers complete Form 8913 and attach it to their regular income-tax returns. Claiming the actual amount of tax billed requires retention of past bills for documentation purposes, for services billed after February 28, 2003 and before August 1, 2006.
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4. How was the standard refund amount for individual taxpayers calculated?
   The standard refund amount for individual taxpayers is based on actual telephone usage data; the amount applicable to a family or households reflects the telephone tax paid by similarly sized families or households. Using this amount is the easiest way for individual taxpayers to claim their refunds and to avoid gathering 41 months of past phone bills. For additional information regarding Federal Excise Telephone Tax refunds go to the IRS website.
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5. What is the standard refund amount for individual taxpayers?

   Individual taxpayers may claim the standard refund amount of $30 to $60, based on the number of exemptions claimed on their tax return.  For those claiming:

   • 1 exemption, the standard refund amount is $30
   • 2 exemptions, the standard refund amount is $40
   • 3 exemptions, the standard refund amount is $50
   • 4 or more exemptions, the standard refund amount is $60

   If the individual taxpayer does not normally file a tax return, they should use IRS Form 1040EX-T to claim the standard refund.

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6. Do I need copies of past telephone bills if I request the standard refund amount for individual taxpayers?
   Individual taxpayers do not need copies of past telephone bills if they request the standard refund amount.
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7. How do I request my refund – Businesses, Non-profit Organizations?
   Businesses and non-profit organizations must complete Form 8913 Credit for Federal Excise Tax Paid, and base their refund requests on the actual amount of excise tax they paid for the 41 months from March 2003 through July 2006. As an alternative, businesses may calculate their refund using the IRS special formula and copies of telephone bills for April and September 2006. This special formula may also be used by any non-profit organization that has more than $25,000 in 2006 gross revenue. For additional information regarding Federal Excise Telephone Tax refunds and the use of the alternative special formula, please go to the IRS website.
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8. Who issues the Federal Excise Telephone Tax Refund?
   The IRS will issue the Federal Excise Telephone Tax refund amount due taxpayers, through the 2006 tax filing process. Wireless carriers do not issue refunds or credits for the Federal Excise Telephone Tax.
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9. How do I decide whether it’s better for me to itemize or request the standard amount?
   Taxpayers should use whichever method provides the largest refund. The standard refund amount is based on actual telephone usage data reviewed by the IRS. Using this amount is the easiest way for taxpayers to request their refund and to avoid having to gather 41 months of past telephone bills. Copies of past telephone bills may be obtainable, but the cost may be more than the tax that would be refunded.
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10. How can I obtain copies of past telephone bills if I decide to itemize?

    Copies of past telephone bills may be obtained by calling or emailing Verizon Wireless' Customer Service. There is a charge of $5-6 per telephone bill copy, based on your location. Please allow up to 8 weeks for telephone bill reprint and delivery. For additional information, or to obtain copies of past telephone bills, send us an email.

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11. Where can I get additional information about the Federal Excise Telephone Tax Refund?

    For more information regarding this one-time refund available on your 2006 federal income tax return, please contact the IRS or your income tax preparer.

    IRS Contact Information:

    • Consumer number: (800) 829-1040
    • Business number: (800) 829-4933
    • IRS Website
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12. How can I contact Verizon Wireless?
    • Visit our Contact Us page.
    • Send us an email
    • Call our Customer Service
    • *611 from your cell phone
    • Or call  (800) 922-0204
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