A bill to provide an extension for filing a refund for the excise tax on toll telephone service, and to provide for a safe harbor for businesses claiming such a refund.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Simplified Small Business Telephone 
Tax Relief Act of 2007''.

SEC. 2. EXTENSION OF FILING PERIOD AND SAFE HARBOR FOR CERTAIN 
              TAXPAYERS FOR REFUNDS OF THE EXCISE TAX ON TOLL TELEPHONE 
              SERVICE.

    (a) Extension of Filing Deadline.--
            (1) In general.--Any overpayment attributable to nontaxable 
        service billed after February 28, 2003, and before August 1, 
        2006, may be allowed--
                    (A) as a credit against any taxes imposed by 
                subtitle A of the Internal Revenue Code of 1986 for any 
                taxable year ending after December 30, 2006, and before 
                January 1, 2008;
                    (B) as a credit against any taxes imposed by 
                chapter 21 of such Code for any period ending after the 
                date of the enactment of this Act and before January 1, 
                2008; or
                    (C) as a refund to the taxpayer under such rules as 
                prescribed by the Secretary.
            (2) Social security trust funds held harmless.--The 
        Secretary of the Treasury shall, from time to time, transfer--
                    (A) from the general fund to the Federal Old-Age 
                and Survivors Insurance Trust Fund an amount equal to 
                the amount credited under paragraph (1)(B) which is 
                attributable to taxes imposed under sections 3101(a) 
                and 3111(a) of the Internal Revenue Code of 1986; and
                    (B) from the general fund to the Federal Hospital 
                Insurance Trust Fund an amount equal to the amount 
                credited pursuant to paragraph (1)(B) which is 
                attributable to taxes imposed under sections 3101(b) 
                and 3111(b) of such Code.
    (b) Safe Harbor.--
            (1) In general.--In the case of an overpayment described in 
        subsection (a) with respect to an eligible taxpayer, at the 
        election of the taxpayer, in lieu of the actual amount of 
        nontaxable service billed after February 28, 2003, and before 
        August 1, 2006, the amount of the overpayment shall be an 
        amount equal to--
                    (A) $50 in the case of an eligible taxpayer with an 
                adjusted gross income for the most recent taxable year 
                of less than $100,000;
                    (B) $100 in the case of an eligible taxpayer with 
                an adjusted gross income for the most recent taxable 
                year of at least $100,000 but less than $200,000;
                    (C) $150 in the case of an eligible taxpayer with 
                an adjusted gross income for the most recent taxable 
                year of at least $200,000 but less than $300,000;
                    (D) $200 in the case of an eligible taxpayer with 
                an adjusted gross income for the most recent taxable 
                year of at least $300,000 but less than $400,000;
                    (E) $250 in the case of an eligible taxpayer with 
                an adjusted gross income for the most recent taxable 
                year of at least $400,000 but less than $500,000; and
                    (F) $300 in the case of an eligible taxpayer with 
                an adjusted gross income for the most recent taxable 
                year of at least $500,000.
            (2) Eligible taxpayer.--For purposes of this subsection, 
        the term ``eligible taxpayer'' means any taxpayer who--
                    (A) is--
                            (i) an entity, or
                            (ii) an individual who has at least $25,000 
                        of gross income from a trade or business for 
                        the most recent taxable year; and
                    (B) was billed for nontaxable service for any 
                period beginning after February 28, 2003, and before 
                August 1, 2006.
            (3) Election.--
                    (A) In general.--The election made under this 
                subsection shall be made in such manner as the 
                Secretary may by regulations prescribe.
                    (B) Special rule for claims relating to preceding 
                years.--No election may be made under this subsection 
                with respect to an overpayment described in subsection 
                (a) on any claim for a refund or credit filed after the 
                date of the enactment of this Act if the taxpayer has 
                previously made a claim for a refund or credit with 
                respect to such overpayment before such date. The 
                preceding sentence shall not apply if the claim for a 
                credit or refund is made on a return amending the claim 
                filed before the date of the enactment of this Act.
    (c) Nontaxable Service.--For purposes of this section, the term 
``nontaxable service'' shall have the meaning given to such term under 
Internal Revenue Service Notice 2006-50, 2006-25 I.R.B. 1141.

Summary: Simplified Small Business Telephone Tax Relief Act of 2007 - Allows an extension through 2007 for filing refunds for excise tax paid on nontaxable toll telephone service billed after February 28, 2003, and before August 1, 2006. Allows taxpayers eligible for such refunds to elect a specified refund amount based on adjusted gross income in lieu of the actual amount of nontaxable toll telephone service billed after February 28, 2003, and before August 1, 2006.