Q. I remember hearing about some telephone tax refund last summer. Is the government going ahead with that?

A. Yes, and most individual taxpayers can get refunds ranging from $30 to $60.

You are referring to the 3 percent excise tax that Uncle Sam charged on long-distance telephone calls. The Internal Revenue Service stopped collecting the tax in August after losing five appellate court battles with businesses that said the tax, levied since 1898, didn't apply to long-distance service as it is billed today.

According to USA Today, the tax was first imposed 108 years ago to help pay for the Spanish-American War and was designed as a levy on wealthy Americans when having a telephone was considered a luxury.

Most likely you qualify for the one-time refund if you had long-distance service from March 2003 to July 2006. The refund also applies to taxes charged on so-called bundled services where plans do not differentiate between long-distance and local calls. Long-distance levies paid on Voice over Internet service are eligible too.

Any individual, business or nonprofit that was charged the tax can request a refund on their 2006 tax-year refunds, according to the IRS.

Many people aren't aware of the refund, said David Ramirez, owner of the four Jackson Hewitt Tax Service locations on O'ahu.

"They're happy to get a little bit of money," said Ramirez. "Probably 80 percent aren't aware of it."

There are two ways to claim a refund.

The first involves sifting through 41 months of telephone bills to figure out how much tax was paid. Once tallied, taxpayers need to get Form 8913 to claim the refund. This should be attached to your 2006 return.

The second is less complicated and easier for taxpayers.

The IRS has created a standard amount that can be claimed by filling out a line on their returns. Even people who don't need to file a return can seek a refund by filling out Form 1040 EZ-T.

For individuals and families, the standard amount is based on the number of exemptions on the returns.

If you claim one exemption, you'll qualify for a $30 standard refund.

Two exemptions qualifies for a $40 refund; three, a $50 refund.

If you've got four or more exemptions, it's $60.

Which route should you choose?

That's up to you. The hassle of trying to find 41 months of telephone bills alone will turn people toward the standard refund.

Simple calculations show that you needed more than $1,000 in long-distance payments (or about $24.50 a month for 41 months) taxed at 3 percent to top the $30 offer for a single exemption.

Ramirez said so far none of his clients have opted to count the tax and file for the original amounts.

Unfortunately for businesses and nonprofits, the standard refund amounts aren't available. They have to base requests on actual amount spent.

One last note: Less than a month into the tax season, the IRS issued a press release saying early filings showed some people were requesting seemingly inflated amounts for the refunds.

In some cases, individuals were requesting thousands of dollars in refunds, indicating long-distance bills of more than $100,000, the IRS said. As such, the tax agency said it may choose to audit entire tax returns or seek criminal prosecution when improper refund amounts are claimed.

Do you have a question about personal finance, taxes or other money matters? Reach Akamai Money columnist Greg Wiles at 525-8088 or gwiles@honoluluadvertiser.com