Long Distance Pays Off

Taxpayers can claim a refund of up to $60 on their 2006 federal taxes with no questions asked as the government attempts to return $8 billion in long-distance telephone taxes that courts have ruled should not have been collected.

A line for the refund will appear in the 2006 federal tax return.

The refund is for taxes billed for any phone service -- cell, fax, computer or land line -- during the 41 months from Feb. 28, 2003, through July 31, 2006, when the IRS stopped imposing the assessment.

Without having to keep or produce any records, a person filing a return with one exemption can claim $30; two exemptions, $40; three exemptions, $50; and four or more exemptions, $60. For example, a married couple filing a joint return with two dependent children, for a total of four exemptions, would be eligible for the maximum $60.

Taxpayers who think they deserve a larger refund can claim it but will have to produce old telephone bills or other records of payment for the period if audited, so start looking for those records now. IRS officials think most people will opt for the no-proof-required, $60 maximum alternative.