Office of the Attorney General
Attorney General Stumbo’S Rate Intervention Division Reminds Citizens of Federal Telephone Tax Refund

Press Release Date:  Monday, December 04, 2006  
Contact Information:  Vicki Glass, 502-696-5643 Office  

Kentucky Attorney General Gregory Stumbo’s Rate Intervention Division reminds Kentucky’s citizens of their eligibility for a telephone tax credit on their 2006 return. Individuals can claim a standard refund for up to $60 for federal excise taxes previously paid on their long distance telephone bills for landline, cell phone, or Voice over Internet Protocol (VoIP).

“My Rate Intervention Division constantly works to protect Kentuckians from excessive utility rates of all kinds. I want to make sure that people are aware of this telephone tax refund, available to everyone who had long distance service between February 28, 2003 and August 1, 2006,” said Stumbo. “Over the last three years, my office has successfully saved consumers more than 100 million dollars by fighting proposed rate increases, and we want people to continue to save by taking advantage of this newly available refund.”

Individuals, businesses and nonprofit organizations are entitled to receive the one time refund. The amount for individuals depends on the number of exemptions they claim, if they use the standard refund, or they can calculate their actual amount paid. Businesses and non-profits, however, must determine the actual amount they have paid if they want a refund.

“Amazingly enough,” stated Stumbo, “this is a tax that was first imposed in 1898 to help fund the Spanish-American war. It was not until this summer that the Internal Revenue Service was forced to stop collecting it.”

For more information from the IRS' website, click here.