Instructions For Form 8913 - Credit For Federal Telephone Excise Tax Paid

Step 1. Are You Eligible To Use This Method?

Specific Instructions

1. Are you an individual taxpayer?

Identifying Number

Yes.

No.

You can use this method. Go to

Enter the identifying number shown on your tax return. If you

Continue

Step 2 at the bottom of this page.

are filing Form 1040EZ-T and you did not enter an

identifying number on that form, leave this space blank.

2. Are you filing Schedule C, C-EZ, E, or F, or

Form 4835?

How To Complete Lines 1–14,

Yes.

No.

STOP

Columns (b) and (c)

You cannot use this method.

Continue

Figuring the Actual Amount of Credit or

3. Enter the amounts from the following lines of your tax

Refund

return:

Taxpayers must have appropriate records for each period a

credit or refund is requested. Businesses and nonprofit

3a. Schedule C, line 1

organizations may be eligible to use an estimation method

3b. Schedule C, line 6

(described below). Enter the tax for all telephone lines for

each period in the applicable column shown on lines 1 – 14.

3c. Schedule C-EZ, line 1

Complete and attach only one Form 8913 to your return.

3d. Schedule E, line 3

Include the tax on prepaid telephone cards and prepaid

cellular service with long distance service in column (b). Do

3e. Schedule F, line 2

not include the tax on local-only service.

3f. Schedule F, line 11

3g. Schedule F, line 45

Individuals cannot request the standard amount for

their personal or business phone service if they

3h. Form 4835, line 7

figure the actual credit or refund for any of their

CAUTION

3i. Add lines 3a through 3h

phone service.

Example 1. A corporation files a consolidated return with

three subsidiaries. The corporation prepares one Form 8913

4. Is line 3i more than $25,000?

which combines the credit or refund request for the entire

group.

Yes.

No.

STOP

You can use this

You cannot use this method. Complete lines

Example 2. Audrey files Form 1040 that includes a

method.

1 – 14 using the actual amounts of tax paid.

separate Schedule C (Form 1040) for each of her three

Go to Step 2.

businesses. Audrey combines the actual tax paid for her

personal and business phone lines and files one Form 8913

Step 2. Figure Your Allowable Excise Tax Rate

with Form 1040.

1. Enter the total amount you paid for telephone

service (including all fees

Business and Nonprofit Estimation Method

and taxes) billed in April 2006. . . . . . . . . . . 1.

A business and nonprofit estimation method is available for

2. Enter the total federal excise

corporations, partnerships, estates, trusts, and nonprofit

tax included on line 1. . . . . . . . . . . . . . . . 2.

organizations. Business also includes individual taxpayers

3. Divide line 2 by line 1. Carry the

result to at least four decimal places . . . . . . . . . . . . . . 3.

filing Schedule C, Schedule C-EZ, Schedule E, Schedule F,

4. Enter the total amount you paid for telephone

or Form 4835, with gross receipts above the limit figured in

service (including all fees

Step 1 of the worksheet. Your organization must have been

and taxes) billed in September 2006. . . . . . 4.

in business April through September of 2006 to use this

5. Enter the total federal excise

method.

tax included on line 4. . . . . . . . . . . . . . . . 5.

6. Divide line 5 by line 4. Carry the

result to at least four decimal places . . . . . . . . . . . . . . 6.

This method will allow organizations to make a

7. Subtract line 6 from line 3. . . . . . . . . . . . . . . . . . . . . 7.

reasonable estimate of their actual credit or refund for the

8. Enter the number of employees

41-month refund period. Using the estimation method may

from line 1 of your second quarter of

2006 Form 941 (but do not count any

reduce the burden of computing the actual credit or refund

household employees, employees in nonpay

for all 41 months. However, there are limits on the amount of

status, pensioners, or active members of the

credit or refund using this method. The limits are explained

Armed Forces). If you did not file Form 941,

in the worksheet. Any organization, or individual filing

enter -0-. . . . . . . . . . . . . . . . . . . . . . . . 8.

9. If line 8 is 250 or less, enter 0.02.

Schedules C, C-EZ, E, F, or Form 4835, can always figure

Otherwise, enter 0.01 . . . . . . . . . . . . . . . . . . . . . . . 9.

the actual amount of credit or refund and not use the

10. Enter the smaller of line 7 or line 9.

10.

estimation method.

-3-

Instructions For Form 8913 - Credit For Federal Telephone Excise Tax Paid - 2006 Page 3

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