December 7, 2006 | Read Time: 1 minute
The IRS has issued instructions to help charities claim a refund of taxes they paid on long-distance telephone calls in years past.
The tax agency said in May that it will no longer tax long-distance calls and will return taxes it collected on such calls going back to 2003.
The IRS expects to return a total of $13-billion collected in long-distance taxes to charities, businesses, and individuals.
In its announcement, the revenue service tells nonprofit organizations and companies that they may use one of two methods to calculate the amount of their refund: They may either add up taxes listed on old phone bills from the past three years, or they may use a formula provided by the IRS to estimate the amount.
A copy of the announcement, IR-2006-179, is available online.
