II 

110TH CONGRESS 

1ST SESSION S. 1123 

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. 

IN THE SENATE OF THE UNITED STATES 

APRIL 17, 2007 

Ms. STABENOW introduced the following bill; which was read twice and 

referred to the Committee on Finance 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Simplified Small Busi5 ness Telephone Tax Relief Act of 2007’’. 


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•S 1123 IS

1 SEC. 2. EXTENSION OF FILING PERIOD AND SAFE HARBOR 

2 FOR CERTAIN TAXPAYERS FOR REFUNDS OF 

3 THE EXCISE TAX ON TOLL TELEPHONE SERV4 ICE. 

5 (a) EXTENSION OF FILING DEADLINE.— 

6 (1) IN GENERAL.—Any overpayment attrib7 utable to nontaxable service billed after February 

8 28, 2003, and before August 1, 2006, may be al9 lowed— 

10 (A) as a credit against any taxes imposed 

11 by subtitle A of the Internal Revenue Code of 

12 1986 for any taxable year ending after Decem13 ber 30, 2006, and before January 1, 2008; 

14 (B) as a credit against any taxes imposed 

15 by chapter 21 of such Code for any period end16 ing after the date of the enactment of this Act 

17 and before January 1, 2008; or 

18 (C) as a refund to the taxpayer under such 

19 rules as prescribed by the Secretary. 

20 (2) SOCIAL SECURITY TRUST FUNDS HELD

21 HARMLESS.—The Secretary of the Treasury shall, 

22 from time to time, transfer— 

23 (A) from the general fund to the Federal 

24 Old-Age and Survivors Insurance Trust Fund 

25 an amount equal to the amount credited under 

26 paragraph (1)(B) which is attributable to taxes 


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•S 1123 IS

1 imposed under sections 3101(a) and 3111(a) of 

2 the Internal Revenue Code of 1986; and 

3 (B) from the general fund to the Federal 

4 Hospital Insurance Trust Fund an amount 

5 equal to the amount credited pursuant to para6 graph (1)(B) which is attributable to taxes im7 posed under sections 3101(b) and 3111(b) of 

8 such Code. 

9 (b) SAFE HARBOR.— 

10 (1) IN GENERAL.—In the case of an overpay11 ment described in subsection (a) with respect to an 

12 eligible taxpayer, at the election of the taxpayer, in 

13 lieu of the actual amount of nontaxable service billed 

14 after February 28, 2003, and before August 1, 

15 2006, the amount of the overpayment shall be an 

16 amount equal to— 

17 (A) $50 in the case of an eligible taxpayer 

18 with an adjusted gross income for the most re19 cent taxable year of less than $100,000; 

20 (B) $100 in the case of an eligible tax21 payer with an adjusted gross income for the 

22 most recent taxable year of at least $100,000 

23 but less than $200,000; 

24 (C) $150 in the case of an eligible tax25 payer with an adjusted gross income for the 


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•S 1123 IS

1 most recent taxable year of at least $200,000 

2 but less than $300,000; 

3 (D) $200 in the case of an eligible tax4 payer with an adjusted gross income for the 

5 most recent taxable year of at least $300,000 

6 but less than $400,000; 

7 (E) $250 in the case of an eligible tax8 payer with an adjusted gross income for the 

9 most recent taxable year of at least $400,000 

10 but less than $500,000; and 

11 (F) $300 in the case of an eligible tax12 payer with an adjusted gross income for the 

13 most recent taxable year of at least $500,000. 

14 (2) ELIGIBLE TAXPAYER.—For purposes of this 

15 subsection, the term ‘‘eligible taxpayer’’ means any 

16 taxpayer who— 

17 (A) is— 

18 (i) an entity, or 

19 (ii) an individual who has at least 

20 $25,000 of gross income from a trade or 

21 business for the most recent taxable year; 

22 and 

23 (B) was billed for nontaxable service for 

24 any period beginning after February 28, 2003, 

25 and before August 1, 2006. 


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•S 1123 IS

1 (3) ELECTION.— 

2 (A) IN GENERAL.—The election made 

3 under this subsection shall be made in such 

4 manner as the Secretary may by regulations 

5 prescribe. 

6 (B) SPECIAL RULE FOR CLAIMS RELATING

7 TO PRECEDING YEARS.—No election may be 

8 made under this subsection with respect to an 

9 overpayment described in subsection (a) on any 

10 claim for a refund or credit filed after the date 

11 of the enactment of this Act if the taxpayer has 

12 previously made a claim for a refund or credit 

13 with respect to such overpayment before such 

14 date. The preceding sentence shall not apply if 

15 the claim for a credit or refund is made on a 

16 return amending the claim filed before the date 

17 of the enactment of this Act. 

18 (c) NONTAXABLE SERVICE.—For purposes of this 

19 section, the term ‘‘nontaxable service’’ shall have the 

20 meaning given to such term under Internal Revenue Serv21 ice Notice 2006–50, 2006–25 I.R.B. 1141. 

Æ 


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