Schedule M 8858 Transactions Between Foreign Disregarded Entity of a For

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8913, PAGE 1 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: NONE

8913

Date

Signature

O.K. to print

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

Action

Revised proofs
requested

OMB No. 1545-XXXX

2006

Credit for Federal Telephone Excise Tax Paid

Department of the Treasury
Internal Revenue Service

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©

Name as shown on your income tax return

Attachment
Sequence No.

Attach to your income tax return.

63

Identifying number

Enter the federal telephone excise tax billed during each period as listed in column (a) of lines 1–14 below.

By filing this form, you are certifying that you (1) have not received from your service provider a credit or refund of the tax paid on
long distance service or bundled service billed after February 28, 2003, and before August 1, 2006, and (2) will not ask your
provider for a credit or refund or have withdrawn any request submitted to the provider for a credit or refund.
Caution. See the instructions for explanations of the services that qualify for a credit or refund of the federal telephone excise tax.

Amount of federal excise tax on long distance or
bundled service only
(b) Long
distance
service

(a) Bills dated during:
1 March, April, and May
of 2003
2 June, July, and August
of 2003

$

3 September, October, and
November of 2003
4 December of 2003; January
and February of 2004
5 March, April, and May
of 2004
6 June, July, and August
of 2004

(c) Bundled
service

$

(d) Tax credit or
refund (add
columns (b) and (c))

(e) Interest
(see instructions)

$

$

$

$

7 September, October, and
November of 2004
8 December of 2004; January
and February of 2005
9 March, April, and May
of 2005
10 June, July, and August
of 2005
11 September, October, and
November of 2005
12 December of 2005; January
and February of 2006
13 March, April, and May
of 2006
14 June and July
of 2006
15 Add lines 1–14 in columns (d) and (e)
16 Total credit or refund requested. Add columns (d) and (e) on line 15. Enter here
and on Form 1040, line 71; Form 1040A, line 42; Form 1040EZ, line 9; Form
1040EZ-T, line 1a; Form 1040NR, line 69; Form 1040NR-EZ, line 21; Form 1120,
line 32g; Form 1120-A, line 28g; Form 1120S, line 23d; Form 1041, line 24f;
Form 1065, line 23; Form 990-T, line 44f; or the proper line of other returns ©
For Paperwork Reduction Act Notice, see the instructions.

Cat. No. 37723M

$
Form

8913

(2006)

9
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8913, PAGE 2 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: NONE

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8913 (2006)

Instructions
Purpose of Form

Page

2

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Form 8913 is used to request a credit or refund of the excise
tax paid on nontaxable telephone service that was billed after
February 28, 2003, and before August 1, 2006. You cannot
request a refund for local only service or for charges in
connection with local only service. See Definitions below.
See the table below to determine those telephone charges
that are allowed to figure the credit amount.
You may request a credit or refund if you:
● Have not received from the collector a credit or refund of
the tax paid on long distance or bundled service billed after
February 28, 2003, and before August 1, 2006, and
● Will not ask the collector for a credit or refund and have
withdrawn any request submitted to the collector for a credit
or refund.
Caution: Claims can no longer be filed on Form 8849, Form
720, or Form 843 for nontaxable telephone service; the IRS
will not process these claims. If you filed a claim prior to May
25, 2006, you or your representative should have received a
letter from the IRS explaining how your claim will be
processed. If you or your representative have not received a
letter or an IRS agent has not contacted you about your
claim, call toll-free 1-866-699-4096 for assistance.

Additional Information
● Notice 2006-50 that is available on page 1141 of Internal
Revenue Bulletin 2006-25 at
www.irs.gov/pub/irs-irbs/irb06-25.pdf.
● Notice 2006-xx that is available on page xxxx of Internal
Revenue Bulletin 2006-xx at
www.irs.gov/pub/irs-irbs/irb06-xx.pdf.

Who Must File
All entities other than individuals must file Form 8913 to
claim the telephone excise tax credit (TETC). Individual
taxpayers may use a standard amount instead of calculating
their actual credit or refund on Form 8913. See Special Rules
for Individuals below.
Credit or refund requests by collectors (carriers). A
collector is the person responsible for paying over the tax to
the government. This is generally the telecommunications
company that provides communications services to the
taxpayer. A collector cannot use Form 8913 to request a
credit or refund for nontaxable service billed to customers of
the collector. See the Instructions for Form 720.
Collectors may request a credit or refund on Form 8913 for
nontaxable telephone service billed to the collector.

Special Rules for Individuals
Standard amounts are available for individuals to claim the
TETC instead of determining the actual amount of the TETC
on Form 8913. See the 2006 Instructions for Form 1040,
Form 1040A, or Form 1040EZ; or new Form 1040EZ-T, Claim
for Refund of Federal Telephone Excise Tax. However,
individuals who want to claim a TETC greater than the
standard amount must file Form 8913. Individual taxpayers
cannot claim a standard amount and file Form 8913 to claim
the actual amount of the TETC.
Tip: The IRS has developed Form 1040EZ-T for use by
individuals who are otherwise not required to file a tax return.
Individuals who are eligible to file Form 1040EZ-T can claim
a standard amount or use Form 8913 to claim the TETC.
Form 1404EZ-T is available on the IRS website at
www.irs.gov.

Communications Service

This table lists the various types of communications service
(defined below) and if a credit can be claimed for the federal
telephone excise tax paid on that service.
Communication Service
Local-only service
Charges in connection with
local-only service (for example,
line charges, Universal Service
Fund, if separately stated)
Bundled service
Long distance service
Pre-paid telephone cards
Pre-paid cellular telephones

Credit Allowed

No
No

Yes
Yes
Yes, by the transferee only
Yes, by the transferee only

How To File

Attach Form 8913 to your 2006 income tax return or to the
return for the first tax year that includes December 31, 2006.

Documentation

You do not have to attach any phone bills or other records to
Form 8913. However, all taxpayers must have in their
possession the appropriate documentation to support the
credit or refund request.
Note. Telecommunications companies are not obligated to
provide billing records to their customers.

Definitions
Local service. Local service means (a) access to a local
telephone system (but not private communications service)
and the privilege of telephonic quality communication with
substantially all persons having telephone or radio telephone
stations constituting a part of such local telephone system,
and (b) any facility or service provided in connection with
such a service.
Local-only service includes the charges for the following
services, even though they may be connected with
long-distance service.
● Telephone amplifier.
● Automatic call distributing equipment.
● Special telephone.
● Subscriber line charge (or access charge if separately
stated).
A universal service fee charge is considered local-only
service if it is separately stated on the bill for local-only
service.
If local and long distance service is billed to a customer on
a single bill, but the charges for local-only service and
long-distance service are separately stated, then the amount
for local-only service is subject to the three percent
communications excise tax.
Nontaxable service. Nontaxable service means bundled
service and long distance service. Nontaxable service also
includes pre-paid telephone cards and pre-paid cellular
service as defined below.
Bundled service. Bundled service is local and long distance
service provided under a plan that does not separately state
the charge for the local telephone service. Bundled service
includes plans that provide both local and long distance
service for either a flat monthly fee or a charge that varies

9
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8913, PAGE 3 of 4 (Page 4 is blank)
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: NONE

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8913 (2006)

Page

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with the elapsed transmission time for which the service is
used. Telecommunications companies provide bundled
service for both landlines and wireless (cellular) service. If
Voice over Internet Protocol service provides both local and
long distance service and the charges are not separately
stated, such service is bundled service.
The method for sending or receiving a call, such as on a
landline telephone, wireless (cellular), or some other method,
does not affect whether a service is local-only or bundled.
Long distance service. Long distance service is telephonic
quality communication with persons whose telephones are
outside the local telephone system of the caller.
Pre-paid telephone cards (PTC). A PTC will be treated as
nontaxable service unless a PTC expressly states it is for
local-only service. Generally, the person responsible for
collecting the tax is the carrier who transfers the PTC to the
transferee. The transferee is the first person that is not a
carrier to whom a PTC is transferred by the carrier. The
transferee is the person liable for the tax and is eligible to
request a credit or refund.
The holder is the person that purchases a PTC for
purposes other than resale. Holders are not liable for the tax
and cannot request a credit or refund.
Example 1. A purchases a PTC from S. A uses the PTC to
place telephone calls. A is a holder and cannot request a
credit or refund.
Example 2. S purchased the PTC from O. O is a
transferee that purchased the card from R. R is the carrier. O
is eligible to request a credit or refund. S cannot request a
credit or refund because S did not purchase the PTC from
the carrier.
Pre-paid cellular telephones. Rules similar to the PTC rules
described above apply to pre-paid cellular telephones. The
transferee is the person eligible to request the credit or
refund.
Carrier refunds. Carriers may request a credit or refund
for PTC or pre-paid cellular telephone nontaxable service
only if they establish that they repaid the amount of tax to
the transferee, or the carrier obtains the written consent of
the transferee to the allowance of the credit or refund. For
more information, see the Instructions for Form 720.

How To Complete Lines 1–14, Columns (b)
and (c)
Taxpayers must have records for each month a credit or
refund is requested unless the estimation method is used
(see below). Combine the amount of tax for the months as
indicated on lines 1-14. Include the tax on pre-paid
telephone cards and pre-paid cellular service with long
distance service in column (b). Do not include the tax on
separately stated local-only service.

Business Estimation Methodology
An estimation method is available for all taxpayers who do
not have their telecommunications bills or payment records
from March 2003 through July 2006. This method will allow
taxpayers to make a reasonable estimate of their credit or
refund for the entire period. To use the estimation method a
taxpayer must have their telecommunications records for any
six consecutive months from March 2003 through July 2006,
and
● If you are a business entity, you must have been in
existence at all times after February 28, 2003, and before
August 1, 2006.
● If you are an individual, you must have paid the federal
telephone excise tax for all months from March 2003 through
July 2006.

3

Estimation Worksheet

Use the following worksheet to estimate your credit or
refund.
See attached
1. Enter the total amount of tax
worksheet.
you paid to all
telecommunications providers
for nontaxable service for any
six consecutive months (March
1. ____________________
2003 through July 2006)
2. Divide line 1 by 6

2. ____________________

3. Multiply line 2 by 41. Enter
here and on Form 8913, line
15, column (d)

3. ____________________

Interest Calculation, Lines 1–14, column (e)
All taxpayers must calculate the interest that is due on the
credit or refund. Multiply the amount of tax on lines 1–14,
column (d), by the appropriate interest factor. If you
determined your actual expense for each line, you must
calculate interest separately for each line.
Form 8913

Interest Start Date

Interest Factor

Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line

August 1, 2003
November 1, 2003
February 1, 2004
May 1, 2004
August 1, 2004
November 1, 2004
February 1, 2005
May 1, 2005
August 1, 2005
November 1, 2005
February 1, 2006
May 1, 2006
August 1, 2006
November 1, 2006

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Amended Returns. (Reserved)

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