Taxpayers have been paying a 3% federal excise “luxury” tax on long-distance service dating back to 1898 that was put in place to pay for the Spanish-American War. According to my sources, that war is now over. But the taxes was never discontinued. Well, until now. We are going to be getting a refund on our 2006 federal tax return. The refunds will be $30 if you’re filing a 2006 return with one exemption; $40 for two exemptions; $50 for three exemptions and $60 for four or more exemptions. The IRS said that these figures are based on “the long-distance phone tax paid by similarly sized families and households.”
If you still have your old phone bills, you can dig through the last 41 months worth and find out how much you actually paid in taxes, and claim that amount on your return.
Not sure why we are only being refunded for the last 41 months, since the tax dates back to 1898? I find it had to believe that it took over 100 years to pay for the war. My guess is they just don’t want to, or feel they need to pay all that money back. I am a little surprised they have bothered paying back anything at all.