There are more than 9700 pages of the federal tax code. 

The need to remain current in the relevant detail, even for just one industry or sector, is a daunting task.  UHY Advisors offer extensive industry and tax experience, delivered with a philosophy we call The Next Level of Service. 

More than just preparing corporate tax returns, we create value by advising clients on strategies to legally reduce or defer tax liabilities. 

Clients benefit from a highly integrated practice across the country, where best thinking and best practices can be proactively applied to client tax challenges.  

Many of our tax professionals joined UHY Advisors from Big 4 firms, where they worked with Fortune 1000 companies.  They chose to join UHY Advisors because of our hands-on, participatory management style where we work to make a difference, and become the valued advisor to our clients.

Refunds for Long Distance Federal Excise Tax

According to a recent IRS ruling, individuals and businesses can file for a refund for federal excise taxes paid on long distance charges between March 1, 2003 and August 31, 2006.  Industry experts say the value of these refunds could reach $15 billion.

Taxpayers can file for refunds on their 2006 tax returns for all excise taxes they have paid on long-distance service billed to them after February 28, 2003.

While individuals may have an easier time claiming this refund, the complexity of business telecom services could necessitate assistance from tax professionals.  

The UHY Advisors Tax Group has established a methodology for efficiently reviewing telecom bills, which are often more complicated than you might expect:

• One client discovered it had 35 different carriers
• Another client receives monthly bills of 600 or more pages
• Companies often forget to include wireless bills in their refund calculations

Who is eligible for these refunds?

Companies and individuals who paid the 3% Federal Excise Tax on long distance services since March 1, 2003.

How are they collected?

There will be a line on the 2006 tax return forms; the refund will either apply against 2006 tax liability or part of a 2006 refund.

Who should investigate the potential refund?

Companies who spend more than $15,000 per month in long distance can receive the best ROI on this investigation.  But it’s not as simple as it seems—many companies neglect to include wireless bills.  And you cannot simply look at the general ledger entry for telephone services, since the refund only applies to the long distance portion of the bill. 

How UHY Advisors can help

The firm has established a methodology for efficient review of invoices.  A trained tax professional can determine whether a company is a good candidate for this refund, and recommend a process for collecting information from service providers.

For this type of  engagement for a non-UHY Advisors tax client, the firm will provide a review package, which includes all back-up to support the claim for a refund.