Tax News

CCH (cch.taxgroup.com) reports:

Some early filing taxpayers have requested "large and apparently improper amounts for the special telephone tax refund," according to the IRS. The IRS is investigating abuses and promises to take quick action against the involved taxpayers and their preparers. IRS Commissioner Mark W. Everson stated that "audit letters will be sent out soon and, when appropriate, [IRS] investigators will visit tax preparers who have been preparing questionable telephone tax refunds." A correct refund claim will only be for the amount of the 3-percent tax imposed on long distance and bundled telephone services during the 41-month period from March 2003 to July 2006. In the alternative, a taxpayer may claim a refund in the standard amount set by the IRS, which ranges from $30 to $60, based on the number of exemptions claimed on the taxpayer's return.
IR-2007-16, 2007FED ¶46,283
IR-2007-16, ETR ¶66,815
Other References:
Code Sec. 4251
CCH Reference - ETR ¶18,135.04
CCH Reference - ETR ¶18,135.68
Code Sec. 4252
CCH Reference - ETR ¶18,375.03
CCH Reference - ETR ¶18,375.25
Code Sec. 6402
CCH Reference - 2007FED ¶38,519.415
Code Sec. 7804
CCH Reference - 2007FED ¶43,266.18
Tax Research Consultant
CCH Reference - TRC PENALTY: 3,258
CCH Reference - TRC EXCISE: 9,056