Telecom Bill Auditing and
  Expense Management Services
 
1.800.473.5655  
Home
Our Services
GSA Services
About Us
Case Studies
Clients
Resources
Employment
Contact Us
Tax Refund Alert
Affiliate

Federal Excise Tax Refund and Recovery (FET) TAX ALERT

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.

  1. Although Strong Efforts Were Made, a Significant Amount of the Telephone Excise Tax Over collected From Individual Taxpayers May Never Be Refunded
  2. The Telephone Excise Tax Refund Program Was Successfully Implemented for Businesses, however, a Large Amount of Over collected Tax Has Gone Unclaimed.
  3. 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 skills necessary 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.

 

 

Federal Excise Tax



Federal Excise Tax Refund Still Can Be Recovered
Here are some ways to ensure you get your FET telecom recovery…


After filing your 2006 return you can still request the refund. Normally you have up to three years to file the amended return. In most cases if you want to request the telecom excise refund or make other changes to your 2006 return you need to file this way:

First, file for an amended return using Form 1040X complete line 15 of the form. Form 1040X cannot be filed electronically; it must be filed on paper. To avoid refund delays, mail your completed Form 1040X at least three weeks after you filed your original return (if it was e-filed) or at least eight weeks later (if filed on paper). You normally have three years to file an amended return. In most cases, this means that if you want to request the telephone tax refund or make other changes to your 2006 return, you must file Form 1040X by April 15, 2010.

Next, if you choose to base your request on the actual amount of tax paid (rather than taking the standard amount), then you also need to fill out and attach Form 8913.

File for an extension to your 2006 annual return which gives you an extra six months to claim your federal excise tax refund. To get the automatic six-month extension, request it on Form 4868. This will give you until October 15, 2007 to file your 2006 annual tax return.

Significant Federal Excise Tax refunds can be obtained if you just request them. We have helped many clients gain their recoveries! With proper documentation you can still obtain your refunds for the past three years of Federal Excise Tax refunds for the period after February 28, 2003, and before August 1, 2006.

The luxury FET (Federal Excise Tax) has been removed. This federal excise tax is also known as a time and distance tax. For business or corporations, claims for refunds must be filed in your 2006 tax returns. FET tax refund advice is only a phone call away. Get the refunds due your company from federal excise tax refunds but only if you act quickly. The Federal excise tax applies to long distance charges found on voice lines (both analog and digital), wireless (cell) long distance, and Voice over Internet Protocol (VOIP) services. Certain documentation is required with your tax return and we highly recommend calculating the interest you are due as well.

The federal excise telecom refund doesn’t apply to local telephone service bills only containing local service. It does apply to those containing long distance charges. The Federal Excise tax will still apply to local phone line service. For companies with large telecom bills this process is very time consuming and the analysis and claim procedure should be ferreted out by a telecom auditor to ensure you get the exempt charges calculated properly for a refund. Once calculated then the supporting evidence is necessary to backup your claim.

With our experience we can determine if you are eligible for the Federal Excise Tax. There is a three year statute of limitations, so don't delay obtaining your refunds.

Services Promised by Auditel

Are you planning to conduct your own telephone bill audit - PROCEED WITH CAUTION. Read a true telecommunications audit story.

 

TakeTheSurvey



Call 1.800.473.5655