Visicom Responds Quickly to IRS Phone Tax Refund Changes

Visicom provides business services for enterprise clients filing for and obtaining the Federal Excise Tax rebate. Also known as the phone tax, large businesses will face significant complexities in properly calculating the FET refund. Visicom provides systems and services that automate the process, resulting in larger refunds, faster refund preparation and greater confidence in performing the calculations.

Madison, WI (PRWeb) November 27, 2006 -- Visicom® announced today that it is ready to assist clients in preparing refund filings to claims for Federal Excise Tax (FET) refunds, in light of the IRS's most recent notice, issued November 16, 2006.

On May 25, 2006, the US Treasury Department announced (http://www.visicomcorp.com/fet.html) that the US Government would cease collecting the Federal Excise Tax on long distance telephone toll charges beginning August 1, 2006. The ruling also indicated that businesses could file for refunds on the FET billed -- and paid -- on bills issued between March 1, 2003 and July 31, 2006. According to the IRS, all taxpayers interested in receiving FET refunds must file a claim for this refund on their 2006 tax returns.

On November 16, 2006, the IRS announced a program (http://www.visicomcorp.com/fet.html) that will allow business filers to estimate the amount of FET refunds using what the IRS calls "a simplified formula." In the announcement, IRS Commissioner Mark W. Everson said, "The formula is a less burdensome option than gathering up to 41 months of old phone records." Martha Buyer, an attorney with expertise in telecommunications law, was surprised by the complexity of the IRS's simplified formula. "While this approach may assist some smaller businesses and non-profits in determining the amount that each is owed, the fact remains that determining the amount eligible for refund is a highly complex process, no matter how you choose to do the math."

The IRS allows for two methods of filing for the refund. Businesses can either 1) document the actual amounts of refundable long-distance telephone excise taxes as identified on telephone invoices (similar to itemizing deductions on a personal tax return) for the 41 month period, or 2) use an approved IRS formula for estimating taxes (similar to a standard deduction on a personal tax return). The formula, using amounts taken from telephone usage (local and long distance calls) invoices from April 2006 and September 2006, produce a percentage amount that can be applied to either quarterly or annual telephone expenses to determine the amount of the refund owed.

According to the IRS formula for businesses, the refund is capped at 1% of the total telephone usage expenses paid by businesses and non-profits with more than 250 employees. Businesses that have the invoices available for the March 2003 to July 2006 periods, and are able to perform the proper calculations, may find the actual amounts to be much greater than the 1% cap allowed by the IRS formula, according to case studies performed on behalf of Visicom clients using both methods.

Nancy L. Peckham, President, CEO and Founder of Visicom stated, "Not only can Visicom assist companies in recovering all of the FET taxes paid, but we can complete the FET calculation in a comprehensive, accurate and timely manner using our proven software for automating the FET refund process. Further, even the 'standard deduction' method for a large complex enterprise can encompass thousands of invoices, and requires a level of expertise and time that many enterprises may not want to invest. Visicom's approach removes the paper chase burden from our clients."

Visicom's proprietary Inview® and Clearview® software (http://www.visicomcorp.com/technology.html) automates the required processing, calculations, and reporting to produce the information required for the IRS filing on Forms 8913 or 990-T both quickly and accurately. Use of this tool will provide businesses with the ability to increase the refund amount substantially over the amount allowed by the IRS formula method. More information is available on the Visicom website regarding the FET phone tax rebate (http://www.visicomcorp.com/fet.html).

After examining numerous client case studies, Visicom found that the itemized method produces a 15% to 35% greater refund than does the formula, or standard deduction method. Peckham added, "Visicom's proprietary software and processes increase the refund amount, and reduce the time to collect and process the data required for refund paperwork. Moreover, our expertise in both software and processing methods give clients the right information the right way."

Richard D. Janezic, VP Sales & Marketing for Visicom said, "Visicom's targeted investments in people and systems enable us to help clients recover a higher FET refund with greater speed and confidence. Year-end activities and tax reporting is burdensome enough. Our portfolio of specialized software and services lets us assist our enterprise clients so they get more of their money back, and allow their employees to work on more strategic tasks."

"The FET refund program is only allowed for the 2006 filing year, so taxpayers must determine a calculation method and file quickly to take advantage of the FET refund," said Peckham.

About Visicom

Founded in 1991, Visicom's leadership in enterprise Telecom Expense Management (TEM) solutions enables clients to manage, measure, and have greater visibility into their enterprise connectivity services (including voice, data, and wireless communications), and thereby streamline operations, reduce risk and improve profitability. Clearview®, Visicom's third-generation software product, delivers significant cost reductions and improved corporate profitability. Fortune 2000® clients across the nation rely on Visicom's services and solutions to improve profitability, streamline operations and reduce risk. For more information, visit http://www.visicomcorp.com

Privately held Visicom is headquartered in one of the nation's leading high tech corridors. Visicom provides services and solutions to clients in the United States through a direct sales team, and a network of select channel sales partners.

For More Information

Richard D. Janezic, VP Sales and Marketing

Visicom

5940 Seminole Centre Court, Suite 300

Madison, WI 53711

608.227.0636

Visicom®, Inview®, and Clearview® are registered trademarks of INI Global®. All rights reserved.

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