WASHINGTON -- The IRS recently announced a formula that business and tax-exempt organizations can use to estimate their federal telephone excise tax refunds.

"The formula will provide a less burdensome option than gathering up to 41 months of old phone records," IRS Commissioner Mark W. Everson said. In May 2006, the IRS announced that individuals, businesses and tax-exempt organizations, including credit unions that paid the long-distance telephone excise tax, could request the refund on their 2006 federal income tax returns.

"Basically, the biggest question we'll have is, if a credit union doesn't file a tax return...we will be discussing with the IRS how they want it submitted," CUNA Senior Vice President of Compliance Kathy Thompson explained. She pointed out that most credit unions do not file taxes.

Thompson said she expects credit unions will be working with their accountants to file and track down the necessary information. She added that the necessary Form 8913 is still in draft form.

A NASCUS spokesperson said the group is still looking at the IRS formula. Utility Audit Company, Inc. President Byron Horner called this an opportunity for all state chartered credit unions to recoup the tax they paid on phone bills over the last three years, which prior to May 25, 2006, only federal credit unions could do.