Will '06 tax changes help you?

Published: Sunday, Feb. 25 2007 12:07 a.m. MST

Telephone users, energy-savvy homeowners and parents of older teens should pay special attention at tax time this year.

Many changes affecting 2006 tax returns are aimed squarely at you.

On balance, the news is good.

"So far, to date across the country, about 75 percent of all taxpayers will receive a refund," said William Brunson, Utah spokesman for the Internal Revenue Service. "As of Feb. 9 (the newest data available), the IRS has issued 23.8 million refunds for a total of $67.6 billion. And the average refund totalled $2,839, compared to $2,753 in the same week last year."

By the time tax season ends, Brunson said, about 136 million returns will be filed. So here are some tips for the 112 million left to file.

E-file, e-file, e-file

Electronic filing is "fast, accurate and secure," Brunson said. Faster, more accurate and more secure than the traditional paper forms.

"It's faster in that within 48 hours, the taxpayer will receive confirmation that we've received their return and that we're processing it," Brunson said. "It's faster in that they could get their refund within about 10 days. It's more accurate in that they'll know sooner if there's a problem with their return. It's more accurate in that the software does the math for you."

And, according to Brunson, it's more secure than a traditional paper form because electronic returns are less likely to be filched by people looking to steal identities or gain important personal information.

For individuals whose adjusted gross income is $52,000 or less, federal income taxes may be prepared and filed for free via Free File, a partnership between the IRS and select tax preparation companies. Brunson estimates that 70 percent of Americans — and Utahns — are eligible to use Free File to submit their federal income tax returns. Free File may be accessed at www.irs.gov.

That telephone tax

Most taxpayers can claim a one-time refund on federal excise taxes for long-distance telephone service — whether for land line, cell phone or Voice over Internet Protocol. The government stopped collecting the 3 percent tax after July 2006 after businesses repeatedly fought the tax and won.

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