Instructions for Form 8913 |
2006 Tax Year |
This is archived information that pertains only to the 2006 Tax Year. If you are looking for information for the current tax year, go to the Tax Prep Help Area.
Enter the identifying number shown on your tax return. If you are filing Form 1040EZ-T and you did not enter an identifying
number on that form,
leave this space blank.
How To Complete Lines 1-14, Columns (b) and (c)
Figuring the Actual Amount of Credit or Refund
Taxpayers must have appropriate records for each period a credit or refund is requested. Businesses and nonprofit organizations
may be eligible to
use an estimation method (described below). Enter the tax for all telephone lines for each period in the applicable column
shown on lines 1-14.
Complete and attach only one Form 8913 to your return. Include the tax on prepaid telephone cards and prepaid cellular service
with long distance
service in column (b). Do not include the tax on local-only service.
Individuals cannot request the standard amount for their personal or business phone service if they figure the actual credit
or refund for any of
their phone service.
Example 1.
A corporation files a consolidated return with three subsidiaries. The corporation prepares one Form 8913 which combines the
credit or refund
request for the entire group.
Example 2.
Audrey files Form 1040 that includes a separate Schedule C (Form 1040) for each of her three businesses. Audrey combines the
actual tax paid for
her personal and business phone lines and files one Form 8913 with Form 1040.
Business and Nonprofit Estimation Method
A business and nonprofit estimation method is available for corporations, partnerships, estates, trusts, and nonprofit organizations.
Business also
includes individual taxpayers filing Schedule C, Schedule C-EZ, Schedule E, Schedule F, or Form 4835, with gross receipts
above the limit figured in
Step 1 of the worksheet. Your organization must have been in business April through September of 2006 to use this method.
This method will allow organizations to make a reasonable estimate of their actual credit or refund for the 41-month refund
period. Using the
estimation method may reduce the burden of computing the actual credit or refund for all 41 months. However, there are limits
on the amount of credit
or refund using this method. The limits are explained in the worksheet. Any organization, or individual filing Schedules C,
C-EZ, E, F, or Form 4835,
can always figure the actual amount of credit or refund and not use the estimation method.
Step 1. Are You Eligible To Use This Method?
1. Are you an individual taxpayer?
2. Are you filing Schedule C, C-EZ, E, or F, or Form 4835?
3. Enter the amounts from the following lines of your tax return:
3a. Schedule C, line 1
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3b. Schedule C, line 6
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+
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3c. Schedule C-EZ, line 1
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+
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3d. Schedule E, line 3
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+
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3e. Schedule F, line 2
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+
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3f. Schedule F, line 11
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+
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3g. Schedule F, line 45
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+
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3h. Form 4835, line 7
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+
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3i. Add lines 3a through 3h
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=
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4. Is line 3i more than $25,000?
Step 2. Figure Your Allowable Excise Tax Rate
1.
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Enter the total amount you paid for telephone service (including all fees
and taxes) billed in April 2006.
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1. |
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2.
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Enter the total federal excise
tax included on line 1.
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2. |
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3.
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Divide line 2 by line 1. Carry the
result to at least four decimal places
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3. |
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4.
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Enter the total amount you paid for telephone service (including all fees
and taxes) billed in September 2006.
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4. |
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5.
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Enter the total federal excise
tax included on line 4.
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5. |
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6.
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Divide line 5 by line 4. Carry the
result to at least four decimal places
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6. |
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7.
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Subtract line 6 from line 3.
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7. |
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8.
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Enter the number of employees
from line 1 of your second quarter of
2006 Form 941 (but do not count any household employees, employees in nonpay status, pensioners, or active members of the
Armed Forces). If you did
not file Form 941, enter -0-.
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8. |
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9.
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If line 8 is 250 or less, enter 0.02.
Otherwise, enter 0.01
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9. |
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10.
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Enter the smaller of line 7 or line 9.
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10. |
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Step 3. Figure Your Credit or Refund for Each Period
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In column (b) of the worksheet below, enter the telephone expenses paid or accrued from your books and records that were billed
for the period in column (a). You may determine your telephone expenses for each month during your tax year by dividing your
annual telephone expenses
for that tax year by 12.
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In column (c) of the worksheet below, enter the rate from Step 2, line 10.
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In column (d) of the worksheet below, multiply column (b) by column (c). Enter the result on the corresponding line in column (d)
of Form 8913.
Do not complete columns (b) and (c) on Form 8913. Complete column (e) and the rest of Form 8913 using these instructions.
All taxpayers must figure the interest due on the credit or refund for each period. If you are an individual, estate, trust,
or partnership (except
an electing large partnership) and you are filing a calendar year return on or before its original due date, multiply the
amount of tax on Form 8913,
lines 1-14, column (d), by the interest factor for the corresponding line in the table below. Interest is computed through
May 30, 2007.
Interest factors are not provided in these instructions for other taxpayers. Tables of interest rates to figure interest on overpayments
for other taxpayers are available in Rev. Proc. 95-17, 1995-1 C.B. 556. The applicable interest rates for overpayments in
effect for periods through
December 31, 2006, are shown in Rev. Rul. 2006-49, 2006-40 I.R.B. 584, which is available at
www.irs.gov/pub/irs-irbs/irb06-40.pdf. For periods after December 31, 2006, use the
applicable overpayment rate under section 6621(a)(1) in the quarterly revenue rulings published in the Internal Revenue Bulletin.
Interest must be figured using the interest start date shown in the table above. The interest ending date is 45 days after
the later of the
original due date or the date you file your return.
Including the Credit or Refund in Income
You must report as interest income in the year received or accrued the part of your credit or refund attributable to interest,
from line 15, column
(e). If you deducted any telephone excise tax paid, you also must include in gross income in the year received or accrued
the smaller of the amount
deducted or the rest of your credit or refund, from line 15, column (d), except to the extent the deduction did not reduce
federal income tax.
You must complete another Form 8913 in full if you are amending a previously filed Form 8913. On the corrected Form 8913,
use the same interest
start date and ending date that were required to be used on your original
Form 8913. Attach both a copy of the original Form 8913 and the corrected Form 8913 to the applicable amended return. Write
“Amended TETR” at
the top of the corrected Form 8913 and the amended return.
Individuals also may file an amended return changing from the standard amount to the actual amount of credit or refund. Attach
Form 8913 to Form
1040X and state that you are changing from the standard amount to the actual amount of credit or refund. Write “Amended TETR” at the top of the
amended return.
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