From Deseret News archives:

Taxpayers neglecting to claim phone tax refund, IRS says

Published: Monday, Feb. 5, 2007 9:36 a.m. MST
 |  E-MAIL | PRINT | FONT + - 
WASHINGTON — More than a third of early tax return filers are not requesting the one-time telephone tax refund entitling them to at least $30, the Internal Revenue Service said.

The IRS notice about mistakes in requesting the refund came after the tax agency sent out a warning that it would take action against taxpayers and tax preparers who improperly claim large refunds from the discontinued tax.

The government last August stopped collecting the long-distance excise tax and has authorized a refund of tax collected on service billed during the period from March 2003 to July 2006.

Those claiming a standard refund amount, which needs no documentation, will receive $30 to $60, based on the number of exemptions they claim. People making claims on the actual amount paid over the 41-month period need not send records to the IRS, but should have documents to back up their claims in case the IRS has questions.

The agency said that in addition to more than one-third of early filers using Forms 1040, 1040A and others not requesting the refund, lower income people using Form 1040EZ-T are failing to show a refund amount on Line 1a.

Story continues below
Others, it said, are requesting refunds based on the entire amount of their phone bills, rather than the 3 percent tax on long-distance and bundled service, or requesting amounts in the hundreds or thousands of dollars.

It advised taxpayers to file electronically because electronic-filing software flags often-overlooked tax breaks. The agency also reminded taxpayers that the break does not apply to the total phone bill or taxes paid on local-only service. Taxpayers are urged to stay away from tax preparers claiming they can get hundreds of dollars or more back.

Most taxpayers can claim the one-time refund on federal excise taxes for long-distance telephone service — whether for landline, cell phone or Voice over Internet Protocol. The government stopped collecting the tax after July 2006 after businesses repeatedly fought the tax and won.

Comments

You can be the first to comment on this story.

previousnext

Latest comments

I'm stoked about this weather!! Let it snow and let it snow hard!! This 4...

I'm all for reducing our oil dependence. I'm all for cleaning up pollution...

West side hoop fan west Jordan cheetahs will be put to sleep tonight by with...

Russell stares down fake Jordan

errrrr Mr. Bryant Anderson. Give us your real identity . . . sitting by your...

Letters: Global warming a lie

You never question the motives of your news sources that are very carefull to...

hey jack Fids, We live in a Representative Republic, not a true Democracy....

Yet again, we learn BCS is a big joke

Which high school did you NOT graduate from? You have been reading between...

Revive full food tax?

How about we tax the legislature every time they think about raising taxes....

Dr.: Mitchell seeks signs from God

Does he understand that what he did was illegal? Can he understand what's...

"The US has been responsible for phenomenal good in the world. But not in our...

Advertisements