Claiming a Refund of Excise Taxes

Use Form 8849, Claim for Refund of Excise Tax, to claim a refund.

Attach Schedule 1, Nontaxable Use of Fuels.

Forms 729, 720, and 4136: If you use Form 720 do not use Form 8849 or Form 4136. If you use Form 729, you can use the Schedule C portion of the form to claim your refund.

You can choose to claim a credit or a refund for the amount of the tax.

A quarterly refund may be claimed for the first three quarters if the refund totals at least $750 in each quarter.

If the refund doesn't exceed $750 in a quarter, you carry the refund to the next quarter and add it to the refund due at that time.

If in the fourth quarter the refund still doesn't exceed $750 you must claim a tax credit.

If you're involved in certain kinds of businesses, sell or manufacture certain products, or receive payment for various kinds of services and facilities, you may have to pay excise taxes. See IRS Publication 334.

Federal Excise Tax Refund on Long Distance Services

According to five appeals courts, the federal government was improperly applying a 3% federal excise tax on long-distance telephone services.

The IRS has agreed to refund the taxes paid on long-distance and wireless services, including interest, billed after February 28, 2003, and before August 1, 2006.

Your refund must claimed on a 2006 tax return:

  • Form 1040
  • Form 1040A
  • Form 1040EZ.

If you were not required to file a return for 2006, to get your refund, file Form 1040EZ-T.

Two ways to get your excise tax refunded (choose one):

  • Use the standard IRS rate (IRS safe harbor) or
  • Use your phone records and claim actual federal excise taxes paid between February 28, 2003 and August 1, 2006.

Tip: Multiple phones- The IRS standard rate may not reflect what you actually paid in excise taxes. If your household had a land line and several cell phones, and they were in use during February 28, 2003 and August 1, 2006 (41 months), claim actual federal excises taxes paid. But remember, you must be able to support actual expenses with phone records.

Credit Amount using the IRS standard Rate:

The minimum credit is $30 and the maximum credit is $60.

The credit is based on the number of exemptions the taxpayer claims:

  • $30, 1 exemption
  • $40, 2 exemptions
  • $50, 3 exemptions
  • $60, 4 exemptions

Enter your credit on:

  • Form 1040, line 71
  • Form 1040A, 42
  • Form 1040EZ, line 9

File Form 8913, if required.

Forms You May Have to File

  • Form 2290, Heavy Highway Vehicle Use Tax Return
    • Certain kinds of trucks, truck tractors and buses used on public highways must pay an excise tax. The tax applies to vehicles having a gross weight of 55,000 pounds or more.
  • Form 730, Monthly Tax on Wagering
    • If your business involves accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering.
    • Use this form to figure the tax on wagers you receive.
  • Form 11-C, Occupational Tax and Registration Return for Wagering
    • Use this form to register for any wagering activity and to pay the federal occupation tax on wagering.

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