November 22, 2006

Telephone Tax Refund - for Nonprofits Too.

The IRS has released procedures for exempt organizations to estimate their federal telephone excise tax refunds. To request a refund, an EO must file Form 990-T, even if it does not have taxable income to report, and attach Form 8913.

What is the telephone tax refund?
The telephone tax refund is a one-time payment available on your 2006 federal income tax return, designed to refund previously collected long-distance federal excise taxes. It is available to anyone who paid long-distance taxes on landline, cell phone or Voice over Internet Protocol (VoIP) service.

Why is the government refunding these taxes?
Several recent federal court decisions have held that the tax does not apply to long-distance service as it is billed today. The IRS is following these decisions and refunding the portion of the tax charged on long-distance calls. The IRS is also refunding taxes collected on telephone service under plans that do not differentiate between long distance and local calls.
The telephone tax continues to apply to local-only service, and the IRS is not refunding taxes charged on local-only service.
The IRS will refund to you the taxes on long-distance service billed to you for the period after Feb 28, 2003 and before Aug 1, 2006. Taxpayers should request this refund next year when they file their 2006 tax returns.

See the following for more information:
* Telephone Tax Refunds: Questions and Answers for Businesses and Tax-Exempt Organizations
* IR-2006-137, IRS Announces Standard Amounts for Telphone Tax Refunds
* Telephone Tax Refund: Questions and Answers for Individuals
* IR-2006-82, Government to Stop Collecting Long-Distance Telephone Tax
* Notice, Communications Excise Tax; Toll Telephone Service

November 07, 2006

State Requirements for Charities on IRS Website

A collection of links to State government web sites with useful information for tax-exempt organizations. Whether you are already operating or just starting, there is something here for you.
Visit the State web sites below and find information on state registration requirements for charities, taxation, information for employers, and more. Click here

November 02, 2006

Anti-Terrorist Financing Guidelines from US Treasury

The U.S. Department of Treasury ("Treasury") is publishing an updated version of its Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-Based Charities ("Guidelines") along with a new Annex. The Guidelines were originally released in November 2002. A revised version of the Guidelines was published for public comment on December 5, 2005. Treasury received nine (9) comments on the revised Guidelines and made a number of additional revisions in response to those comments.

IRS Announces 2007 Standard Mileage Rates

WASHINGTON -- The Internal Revenue Service today issued the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2007, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
* 48.5 cents per mile for business miles driven;
* 20 cents per mile driven for medical or moving purposes; and
* 14 cents per mile driven in service to a charitable organization.