IRS Says Taxpayers Can Still Request Phone Refund

According to the IRS, thousands of taxpayers still have the opportunity to collect the one time phone tax refund. Nearly all phone customers, including cell phone customers, are eligible for the refund that over 92.1 million taxpayers, or 71.6% of all individual tax return filers, have already requested. The IRS is encouraging all taxpayers who haven’t filed their tax return yet or who obtained a tax-filing extension earlier this year to remember to include the tax credit when filing their returns. Taxpayers who don’t need to file a regular income-tax return can use Form 1040EZ-T, a special short form for requesting the refund.

Free File For Telephone Tax Refund

Because of the confusion over the telephone tax refund the IRS is reminding telephone users who do not normally file tax returns that they can take advantage of the Free File system to request a telephone tax refund. According to the IRS the Free File system is the easiest and quickest way to request the refund, which could arrive in taxpayers bank accounts in about two weeks. IRS Commissioner Mark W. Everson claims, "Fee File is a great choice for people who don’t normally need to file a tax return but who are entitled to this special telephone excise tax refund." For more information on requesting a telephone tax refund through Free File, 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.

Getting Your Phone Tax Refund

On August 1, 2006, congress eliminated an excise tax on long-distrance telephone calls. Additionally, the IRS erronesoulsy collected the tax from thousands of phone users. The IRS has promised to refund the money erroneously collected. Depending on your situation, there are a number of different ways to get the refund. You can claim it as a credit on your 2006 tax return, use the IRS' 1040EZ-T form or use the IRS' estimated amounts. Businesses, however, do not get to claim a simple dollar amount and must calculate their return amount. For more information on getting your phone tax refund visit Kiplinger.com.