By Lisa Leslie

People filing 2006 tax returns in 2007 will be eligible for a refund of the long distance telephone taxes they have paid. Tax filers will also have more options and flexibility for choosing how to receive their federal income tax refunds.

Federal appeals courts have ruled that a long distance telephone tax that has been collected since 1898 is no longer compatible with today’s modern information society. As a result of these decisions, consumers who paid the long-distance tax will be eligible to file for a refund of the long distance taxes they have paid for the last three years.

People who would like to receive the refund will file on their 2006 returns. All of the 1040 forms will include a line for requesting the refund. The refund only applies to long distance. Taxes on local phone service have not gone away.

People who have kept records of their old phone bills will be able to claim the full amount of the taxes they have paid. The IRS is providing a standard refund from $30 -$60 for those who have not kept records. The exact amount of your standard refund depends on the number of exemptions you claim.

• One exemption – the refund amount is $30.
• Two exemptions - $40.
• Three exemptions - $50.
• Four exemptions - $60.