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Tax Credit Consulting: Federal Excise Tax Credit Rocky Mount NC

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War and although it is commonly considered to have been in force since that time, the truth is that it has been repealed and reinstated several times.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 In other words, it is reinstated to raise revenue during time of war and then was repealed when peace returned.

Liberty Tax Service
(866) 871-1040
1356 Raleigh Rd
Rocky Mount, NC

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Liberty Tax Service
(866) 871-1040
309 N Fairview Rd
Rocky Mount, NC

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H&R Block Inside Hunter Hill Shopping Center
(252) 443-9233
1457 HUNTER HILL RD
ROCKY MOUNT, NC

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Liberty Tax Service
(866) 871-1040
2115 Forest Hills Rd W
Wilson, NC

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Dr. John L. Harris (RFC®), CFP, PHD
(919) 782-9429
507 Marlowe Rd.
Raleigh, NC
Company
Carolina Financial Planning
Qualifications
Education: Ph.D
Years of Experience: 10
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Planning, Compensation Plans

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Jackson Hewitt
(252) 985-5878
222-A Fairview Rd.
Rocky Mount, NC

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H&R Block
(252) 451-1729
1561 BENVENUE RD
ROCKY MOUNT, NC

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1ST CHOICE T & P SERVICES(TAX & PROPERTY)
(252) 907-4456
BLACKSTREET
TARBORO, NC
 
Jackson Hewitt
(252) 237-5152
401 Lillian Rd
Wilson, NC

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Roger Myers
632 Matthews-Mint Hill Rd.
Matthews, NC
Company
Title: Branch Manager
Company: Dalton Strategic Investments
Type
Investment Advisor Rep: Yes
Years Experience
Years Experience: 29
Service
Captive Insurance,Pension for Highly Compensated Owners,Income for Life/ Preserve Principal,Alternative Investments,Annuities,Alternative Asset Class Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planning,Individual Income Tax Planning,Wealth Engineering,Stock Market Alternative,Wealth Management,Life Insurance,Investment & Portfolio Management,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management P

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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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