The FET was removed from bills one month ago and companies should be seeing the cost reduction. The pending FET Refunds of $14.5 billion should properly be termed "The Great Phone Tax Refund of 2006"
Fairfax, CA -- (ReleaseWire) -- 08/31/2006 --Economists have yet to catch on to the significance of the recent IRS action ending the 3% Federal Excise Tax (FET) levied on many telecommunications services. They are also ignoring the significance of the IRS offer to refund $14.5 billion to individuals and businesses.
Telecommunications expenses are one of the top five expense categories for businesses in America today. Effective August 1, 2006, every business in the US received a gift from the IRS when the 108 year old FET was eliminated for long distance, cellular and other bundled telecommunications services. Consumers are enjoying the savings now too. Economists have yet to report on the significance of this event.
In a weekly newsletter available at www.fetrefunds.com , Bob Schwartz, “The Phone Tax Refund Guy” and CEO of Bill Correctors, Inc., calls the elimination and subsequent refunding of the FET: “The Great Federal Excise Tax Refund”. Schwartz says: “I haven’t heard anyone call this a “Great” event, and it represents a significant reduction to a major cost for many US firms. Businesses like 1.800.FLOWERS, telemarketing firms, and others with heavy long distance or cellular usage will get an ongoing boost to their bottom line from this new 3% cost reduction.”
The event is so large, effecting every household and business in the country, that it has earned a place on all individual and corporate tax returns for 2006! In addition to removing the FET from many telecommunications services the IRS is gearing up to receive 100 million refund claims, and pour $14.5 billion in refunds into the economy next year.
Schwartz continues: “The refund process is complex and time consuming because impeccable documentation will be required. Determining the exact amount paid involves retrieving old phone bills, reading them, finding relevant charges on at least 2 or 3 lines of the bill, making calculations, and tallying the results by vendor quarterly, for each bill from the past 41 months. I’m amazed that economists have dropped the ball on this one. Stock values should be affected by the elimination of the tax, and a $14.5 billion infusion of cash into the economy should make a difference somewhere.”
About Bill Correctors, Inc:
Begun in 1983 as a Telecom Expense Management (TEM) company, Bill Correctors, Inc. (BCI) www.billcorrectors.com manages and reviews bills from all telecommunications voice, data, and cellular providers in order to cut telecom confusion and cost for clients. Based in Fairfax, California, the company consolidates telecom billings, reviews bills for compliance with negotiated contracts, and issues various detailed enterprise-wide weekly & monthly reports for trending, accounts payable, and more. It also provides cost saving optimization services through invoice reviews, refund services, FET claim processing services www.fetrefunds.com policy and procedure assistance, and order desk services. With a complete set of TEM Relief Services from BCI www.temrelief.com you can be confident that your business rates are competitive, inventories are accurate, and controls are in place.
Media Contact: Bob Schwartz (415) 457-3000 x 215