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TAX REFUND ALERT

FEDERAL EXCISE TAX REFUND (FET) TIME RUNNING OUT TO CLAIM THIS RECOVERY – Over $4 Billion still unclaimed as of last report

We can show you evidence in three reports from the United States Treasury Department to prove that our government is trying to alert the public on the various monies due Corporations, Business, and Residents but their efforts are not working. In a Report dated September 2008 they stated “Our Report on the business program concluded that 94.4 percent of business taxpayers did not claim any Telephone Excise Tax Refund (TETR) - even though they most likely qualified for it –and that only a small portion of the tax collected from them will ever be refunded.”

This information was located in a report dated April, 2008 by the Treasury Inspector General: “The IRS estimated that between 13.9 million and 15.9 million business taxpayers would be eligible to claim the TETR and approximately $5 billion were owed.” They also noted that As of November 24, 2007, approximately 721,410 of the 12.8 million business taxpayers who filed their returns made Federal Excise Tax claims of $876.6 million. This accounts for only 5.6 percent of the estimated number of businesses that could have claimed the credit and only 17.5 percent of what was collected. This means there is still over $4 Billion dollars left to be claimed by the US Taxpayers.

In September 2008 the US Treasury Inspector Generals Office reported on a telephone survey they had conducted to find the reasons Tax Preparers did not claim the FET tax. Their survey was performed on 163 Tax Preparers and the results found that 1) they informed their clients that the time it would take to complete the work would cost more than they would recover, or 2) they informed their client that they did not qualify, or 3) they were not aware of the tax or confused, or some forget to claim the tax.

Figure 1: Why the Excise Tax was not claimed (Preparers Response)


Expense Outweighed Benefit

44%

Did Not Qualify

35%

Not Aware

10%

Overlooked

10%

Confused

1%



In this same survey 54 Preparers were asked additional questions regarding filing amended tax returns. It was found that out of the 54 questioned on this, 30 had no plans to file an amended tax return for their clients without realizing the money they didn’t recover.

Figure 2: Preparers Plans to File Amended Tax Returns to Claim the FET tax

Reason for Not Claiming

# Preparers

No Plans to Amend

Plan to Amend

Would Consider

No Response

Cost Outweighed the Benefit

19

13

1

2

3

Not Aware of the Tax

17

9

1

4

3

Overlooked the Tax

16

7

2

4

3

Confused about the Tax

2

1

0

1

0

Totals

54

30

4

11

9



Our information was obtained from the following three reports and this documentation shows the Governments efforts in trying to reach out to the business tax preparers and make them more aware of this tax.

• Although Strong Efforts Were Made, a Significant Amount of the Telephone Excise Tax Over collected From Individual Taxpayers May Never Be Refunded

• The Telephone Excise Tax Refund Program Was Successfully Implemented for Businesses, however, a Large Amount of Over collected Tax Has Gone Unclaimed.

• The Telephone Excise Tax Refund Was Not Claimed on Business Tax Returns Primarily Because of the Perceived Work and Expense Involved to Do So

It is sad that most businesses are unaware of their chance to claim the Federal Excise Tax (FET) refund from the IRS. This unclaimed money is still available and there is a chance to recover any unclaimed money with an amended return

Auditel has the necessary skills to recover the full amount of this over-collected tax, plus any other unclaimed taxes allowed by law for your Company. The process is faster than you would imagine and our clients usually receive their refund checks from the Internal Revenue Service (IRS) within six (6) weeks time.

Your business has nothing to lose and we will make every effort to recover all the over collected taxes, surcharges, billing mistakes, and over charges occurring monthly inside your telecom bills. As you can see from this article that even the best Tax Preparer rarely knows telecom, and even with detailed tax instructions it was still a difficult and confusing issue. We are experts in the telecom arena and have been using our proven process and attention to detail for over 18 years. Our clients have made Auditel a great success. Contact us today at 800-473-5655 to find out how much tax you could recover, and how much time is left to claim it.
 
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