Investment & Planning News

TAX LAW CHANGES FOR ALL TAXPAYERS
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Article from IRS website

Congress passed legislation in December 2006 that changes how tax
forms and instructions that have already been published must be
completed to claim certain extended provisions. More information about
this legislation and some of the affected tax products can be found in
the Internal Revenue News Release dated December 22, 2006.

 
Filing Deadlines Impacted by District of Columbia Emancipation Day

Under a federal statute enacted decades ago, holidays observed in the
District of Columbia have an impact nationwide, not just in D.C. Under
recently enacted city legislation, April 16 is a holiday in the
District of Columbia. The IRS became aware of the intersection of the
national filing day and the local observance of the new Emancipation
Day holiday after most forms and publications for the current tax
filing season went to print.

Any IRS form, instruction or publication that currently shows an
"April 16, 2007" due date should now be read as "April 17, 2007." The
extended time to file and pay is because April 15 falls on a Sunday in
2007 and the following day, Monday, April 16, is Emancipation Day, a
legal holiday in the District of Columbia.

Other tax-filing and payment requirements affected by this
change are described in IRS Publication 509, Tax Calendars for 2007.
 
Credit for Federal Telephone Excise Tax

If you were billed after February 28, 2003, and before August 1, 2006,
for the federal telephone excise tax on long distance or bundled
service, you may be able to request a credit or refund of the tax
paid. You had bundled service if your local and long distance service
was provided under a plan that does not separately state the charge
for local service.

You cannot request the credit if you have already received a credit or
refund from your service provider. If you request the credit, you
cannot ask your service provider for a credit or refund and must
withdraw any request previously submitted to your provider.

If you are required to file an individual income tax return, Form
1040-PR, or Form 1040-SS request the credit on that return. If you are
not required to and do not file any of these returns and would like to
request a refund of the tax paid, file Form 1040EZ-T, Request for
Refund of Federal Telephone Excise Tax.

You can request the standard amount or the actual amount you paid. If
you believe you paid more than the standard amount, it can be to your
benefit to request the actual amount. If you request the actual amount
paid, you must file Form 8913 showing the amount paid and keep records
to substantiate the amount. If you were a sole proprietor, farmer, or
lessor of rental real estate, you may be able to estimate your actual
expenses. See Form 8913, Credit for Federal Telephone Excise Tax Paid,
and the Instructions for details.

All taxpayers filing Form 8913 must figure the interest due on the
credit or refund for each period (the standard amount includes
interest—see below) shown on lines 1 through 14 of Form 8913.

For an individual, estate, trust, or partnership (including an
electing large partnership) filing a calendar year return on or before
April 17, 2007, see the Instructions for Form 8913 for the interest
factors to use.

Information on interest factors for corporations to use in completing
Form 8913 is available for download.


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