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Tax Credit Consulting: Federal Excise Tax Credit Leavenworth KS

The Excise Tax has a long history. It was started in response to the Spanish American War and although it is commonly considered to have been in force since that time, the truth is that it has been repealed and reinstated several times. It has been closely associated with various wars. In other words, it is reinstated to raise revenue during time of war and then was repealed when peace returned.

Zupancic David P Ltc Ret
(913) 682-3000
426 Cherokee St
Leavenworth, KS

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Liberty Tax Service
(866) 871-1040
2920 S 4th St
Leavenworth, KS

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H&R Block
(816) 584-1337
6325 LEWIS DR STE 112
PARKVILLE, MO

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Jackson Hewitt
(816) 746-1040
8640 N Green Hills Road
Kansas City, MO

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Miller Tax Svc
(913) 422-0710
109 W 2nd St
Bonner Springs, KS

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Jackson Hewitt
(913) 651-5300
3009 S 4th Street
Leavenworth, KS

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Jackson Hewitt
(888) 446-2429
6264 Lewis Drive
Parkville, MO

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Liberty Tax Service
(866) 871-1040
7012 Nw 83rd Ter
Kansas City, MO

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Liberty Tax Service
(866) 871-1040
13028 Kansas Ave
Bonner Springs, KS

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Vendetti Murray
(913) 721-0040
134 N 130th St
Bonner Springs, KS

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Tax Credit Consulting: Federal Excise Tax Credit

Federal Excise Tax Credit

The Federal Excise Tax Credit was the result of a long standing court case against the IRS concerning the Excise Tax on long distance telephone service.

Federal Excise Tax Credit

The Excise Tax has a long history. It was started in response to the Spanish American War and although it is commonly considered to have been in force since that time, the truth is that it has been repealed and reinstated several times. It has been closely associated with various wars. In other words, it is reinstated to raise revenue during time of war and then was repealed when peace returned.

The tax was levied in part on communication services. It was imposed in recent years on telephone bills and was based in some part on the length of a call and the distance between callers. The tax was added to a person's telephone bill and paid by the telephone company to the Government using Form 720 which was a quarterly Excise Tax return. For the most part, people were unaware of the tax. It was just another small item on their telephone bill month after month.

The objection came when telephone service providers began to change how they charged for telephone service. Distance between callers and length of the call was not always the determining factor in telephone billing. The Excise Tax was considered to no longer apply. It took several years of debate in the Courts before the IRS eventually gave in and the Excise Tax on telephone bills was stopped as of the summer of 2006. This led to a one time Federal Excise Tax Credit in 2006.

The Credit could be claimed in two ways. The easy and more common method was to just take a standard credit. This credit could be taken on line 71 of Form 1040 and a similar line was available on Form 1040A. The Credit was determined by the number of exemptions that the taxpayer was entitled to claim. A single person with no exemptions could claim $30. This went up in $10 increments. Two exemptions could claim $40. A taxpaye...

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