We are now able to Electronically File (E-File) all Federal Individual Returns and all state individual returns that accept E-Filing. Unfortunately at this time Tennessee does not yet accept e-filed returns. More and more Americans are choosing to e-file their returns. The 2006 filing season set a record of 73 million tax returns being filed electronically. Overall, there were more tax returns filed electronically last year than the number of paper returns processed in 1966. Benefits of E-filing Faster refunds Most e-file refunds are issued within three weeks, and you can get your refund within a week if you've selected direct deposit. More accurate returns Computer checks are done prior to transmission, and IRS computers then automatically check for errors and missing information. Certain delivery and quick confirmation You may recall that last year, several sacks of tax returns were lost en route to the IRS. E-filers get a confirmation of receipt within 48 hours. No paperwork for you or the IRS Paperless returns are less expensive for the government to handle, and of course you're saving the cost of printing and mailing. Convenience You can e-file any time of the day or night, and both complex and simple returns can be filed electronically. Easy payment options You can schedule an automatic withdrawal from your bank account to pay taxes, so you can e-file now and pay any monies owed on April 15.

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The IRS has conceded defeat in a long battle with federal and district courts over the imposition and collection of federal excise taxes on your long-distance telephone service. This decision impacts nearly every taxpayer that pays for long-distance telephone service for their home or business. The decision (1) directs collectors of the tax to stop collecting the tax, and (2) allows taxpayers to file claims for a refund or credit of any amount of excise tax that was billed and paid after February 28, 2003 and before August 1, 2006. Refunds allowed under this decision will include interest. The rules regarding the filing of such claims require that the claim be made on your 2006 tax return, which for most taxpayers is not due to be filed until 2007. However, the claims must be documented with records and receipts of amounts paid, so that it is not too early to think about gathering such records in anticipation of claiming a refund or credit for this tax on your 2006 return. Individual taxpayers will not be required to furnish such proof of excise tax paid if they choose to claim a "safe harbor" amount as directed by IRS. Individual Standard Amount This is probably the easiest method of the refund and is fairly comparable to the amount you would receive if you figured your actual Federal Excise Tax, without all of the hassle of searching through years of phone bills to find amounts. Here is how it works... Individual taxpayers qualify for a standard credit between $30 and $60 based on the number of exemptions they are eligible to claim on their 2006 tax return. For those who can claim: one Exemption, the standard refundable credit is $30; two Exemptions, the standard refundable credit is $40; three Exemptions, the standard refundable credit is $50; and, four Exemptions or more, the standard refundable credit is $60. Estimate Formula Businesses or individuals with Schedules C, E, and/or F with a gross income totaling more than $25,000 can use the estimated Telephone Excise Tax Refund method. Below is a form that will help you gather the information we will need in order to calculate the estimated amount. In most cases the total amount of the refundable credit will be less that one-third of one months total phone bill. Information needed to Estimate Telephone Excise Tax Refund On April 2006 Bill Total Excise Tax Total Bill On September 2006 Bill Total Excise Tax Total Bill Did you have less than 250 Employees in 2006? Yes or No. Total Telephone Expenses for Each Year Listed 2003 2004 2005 2006 Actual Amounts You can compute the actual tax paid. To use this method you will need to locate the bill for each of the 41 months the refund covers (services after February 28, 2003 and before August 1, 2006). The locate the actual amount of the Federal Excise Tax charged for long distance or bundled services on each bill. The sum of these amounts is your credit. We are not recommending this method for taxpayers with less than a $10,000 average monthly phone bill. Which Method Works For You Below is a chart that shows options available to each type of entity. Telephone Excise Tax Refund Options Available Individual Standard Amounts Estimate Formula Actual Amounts Individuals X or n/a or X Individuals with Schedule C, F and or E gross income >$25K X X business only but individual forgoes standard X Corporations n/a X X Partnerships n/a X X
Why are taxpayers getting extra time to file and pay? Taxpayers will have extra time to file and pay because April 15 falls on a Sunday in 2007, and the following day, Monday, April 16, is Emancipation Day, a legal holiday in the District of Columbia. By law, filing and payment deadlines that fall on a Saturday, Sunday or legal holiday are timely satisfied if met on the next business day. Under a federal statute enacted decades ago, holidays observed in the District of Columbia have an impact nationwide, not just in D.C. Under recently enacted city legislation, April 16 is a holiday in the District of Columbia. The IRS became aware of the intersection of the national filing day and the local observance of the new Emancipation Day holiday after most forms and publications for the current tax filing season went to print. Individuals in the District of Columbia, as well as in six eastern states, already had an April 17 filing date prior to this announcement because they are served by an IRS processing facility in Massachusetts, where Patriots Day will be observed on April 16. These individuals are still required to file on April 17. Who can take advantage of this extended deadline? Anyone who previously qualified for the April 16, 2007 deadline for filing a return, making a payment or deposit, requesting an extension or performing an act provided for under the Internal Revenue Code, qualifies for the extended deadline. Publication 509, Tax Calendars for 2007, lists many of the actions affected by this provision. This publication can be found on the IRS Web site. Among the IRS actions that qualify for the new April 17 deadline are: Calendar-year 2006 federal individual income tax returns, whether filed electronically or on paper (Forms 1040, 1040A or 1040EZ). Requests for an automatic six-month tax-filing extension on an individual return for calendar-year 2006, whether submitted electronically or on Form 4868. Tax-year 2006 balance-due payments, whether made electronically (direct debit or credit card) or by check. For calendar-year taxpayers, individual estimated tax payments for the first quarter of 2007, whether made electronically or by check. In rare cases, estimated tax payments for the second, third and fourth quarters may be affected for individuals operating on a fiscal year that is not a calendar year. Individual refund claims for tax year 2003, where the regular three-year statute of limitations is expiring. For calendar-year taxpayers, tax-year 2006 contributions to a Roth or traditional IRA. Corporation income tax returns, including S corporations (Forms 1120, 1120-A and 1120S) for a fiscal year ending on Jan. 31, 2007, and any balance due. For a calendar-year corporation, the estimated tax payment for the first quarter of 2007. In some cases, estimated tax payments for the second, third and fourth quarters may be affected for corporations operating on a fiscal year that is not a calendar year. Calendar-year estate and trust income tax returns (Form 1041) and any balance due. For calendar-year estates and trusts, the estimated tax payment for the first quarter of 2007. In some cases, estimated tax payments for the second, third and fourth quarters may be affected for estates and trusts operating on a fiscal year that is not a calendar year. Calendar-year 2006 partnership returns (Form 1065). Extension requests for any return. The March tax deposit for employers (generally, small businesses) required to deposit withholding taxes on a monthly basis. Will the April 17 deadline be the same in 2008? No. Because of the calendar, there will not be a conflict involving Emancipation Day next year. April 15 is on Tuesday in 2008, so the normal deadline will apply. The next year that Emancipation Day could affect filing deadlines is 2011.