Q What is the telephone excise tax, and how is it abused?
A The IRS used to collect tax on long-distance phone calls. But Congress told the IRS it couldn?t collect that, and made the IRS give it back, IRS certified enrolled agent Connie Kurtz said.
Only a 3 percent tax on long distance and bundled service can be claimed, but some people thought you could claim the entire bill, Kurtz said.
Topping this year?s “Dirty Dozen” of IRS top 12 tax scams is abuse of this refund.
IRS auditors and investigators have seen evidence that professional tax preparers are helping clients file apparently improper requests, according to a National Association of Enrolled Agents release.
