IRS Urges Taxpayers To Check Returns

Last week the IRS released statistics on the tax returns that they have received this tax season, and many people are not claiming the phone tax refund. Out of the thirty million tax returns that were filed before February 16th nearly 10 million did not claim the refund. Even more shocking, nearly half of the returns were prepared by a tax preparation office. The IRS is now encouraging taxpayers to check their returns to make sure they are aware of the one time phone tax refund, even if a tax preparation company prepared it. For more details on claiming your phone tax refund visit the IRS’s official site.

IRS Cracking Down On Abusive Tax Returns

Over the past week the IRS has been sending out IRS criminal investigators to tax preparation offices in seven major cities. The raids are part of the IRS’s crack down on tax preparation companies claiming thousands of dollars in phone tax refunds for clients who should only be getting $30 - $60 phone tax refunds. Investigators served search warrants for offices in Atlanta, GA; Dallas, Tyler, and Athens, TX; Riverside, California; Miami, Fla.; and New Orleans, LA. IRS agents have been temporarily closing businesses, and seizing computers and documents for evidence. The IRS is advising every one to stay away from tax preparers who make exaggerated claims about phone tax refunds. For more information check out the IRS’s website, or Yahoo News.

IRS To Prevent Telephone Tax Refund Abuse

In reaction to some tax preparers improperly claiming thousands of dollars in phone tax refunds the IRS has started a campaign to curb this abuse. According to the IRS’s website, they are finding instances of tax preparers claiming thousands of dollars in phone tax refunds, when their clients are only entitled to a fraction of that amount. In many cases the refunds appear to be for the entire amount of the taxpayer’s phone bill, rather than just the three-percent tax. To combat this the IRS is sending agents on special site visits to some tax preparation offices and will not process tax returns for taxpayers that claime more in phone tax refunds than they are entitled to claim. To get help with properly claiming this on your tax return, visit the IRS’s Telephone Excise Tax Refund page.

Many Early Filers Are Missing Out On the Phone Tax Refund

According to the IRS more than a third of taxpayers filing their returns early are not claiming the onetime phone tax refund that they are entitled to claim. A basic phone tax refund does not need any documentation and entitles taxpayers to a refund of at least $30, depending on the number of number of exemptions one claims. If you need more help to claim your phone tax refund, the IRS has set up a page with tips and advice that you can visit by clicking here.

Phone-Tax Refunds

In August the Treasury Department stopped collecting a three-percent tax on long distance calls, which has been in effect since the time of the Spanish American War back in 1898. It was also announced that the IRS would refund all money collected since March 2003 under the long distance tax. The government is expected to return up to $13 billion to individuals, businesses, and organizations. WashingtonPost.com has a helpful article with more details on this new return, including how to calculate the refund amount. To read the article click here.

Roni Deutch Tax Center Opens

On October 30th, 2006 the first Roni Deutch Tax Center opened in California. At the Roni Deutch Tax Center we offer tax return preparation over the phone so you never have to leave the comfort of your own home. We look forward to revolutionizing the tax return industry by providing you with a convenient alternative to traditional tax preparation services. For more information please visit RDTC.com.