Did You Remember to Request
Your 2006 Telephone Tax Refund?
by Patricia Schaefer
The IRS announced in a June 8, 2007 news release that about 30 percent of taxpayers did not request the Telephone Excise Tax Refund on their 2006 returns so far this year, and although some of them may not be eligible, others may qualify and not know it. Earlier this year, the IRS urged taxpayers filling out their 2006 returns not to overlook this refund.
There's good news, though, for eligible taxpayers who overlooked the refund but already filed their 2006 returns: You can still request it by filing an amended return on Form 1040X.
What is the Telephone Excise Tax Refund (TETR)?
According to the IRS, the TETR "is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it.
"To make the refund easier to figure, the government established a standard refund amount, based on personal exemptions, ranging from $30 to $60. If taxpayers have phone bills and other records, they can request the actual amount of excise tax paid. Though using the standard amount is optional, it is easy to figure and approximates the eligible amount for most individual taxpayers. Taxpayers only need to fill out one line on their return, and they don't need to present proof to the IRS."
Business owners and individuals may want to avail themselves of helpful and accurate information about this one-time refund on this IRS website page:
http://www.irs.gov/newsroom/article/0,,id=164032,00.html. Here you can find answers to frequently asked questions for individuals, businesses or tax-exempt organizations. Taxpayers can also download forms, and link to participating private-sector Free File partners offering free electronic-filing services.
IRS Warning to Taxpayers of Fraudulent Refund Claims
In its June 2007 news release, the IRS also announced it had obtained federal indictments this spring against tax preparers who allegedly filed thousands of dollars in fraudulent telephone excise tax refund claims.
"The IRS has advised taxpayers to stay away from unscrupulous promoters and tax preparers who make false claims about the telephone tax refund and suggest that many, if not most, phone customers can get hundreds of dollars or more back under this program.
"We saw limited but serious instances of abuse," said IRS Acting Commissioner Kevin M. Brown. "We used our enforcement resources to move swiftly and decisively to protect this valuable refund for the vast majority of taxpayers and tax preparers who are requesting it properly. We want everyone who is eligible for the telephone tax refund to get it but not to inflate the amount requested."
Copyright 2007, Attard Communications, Inc.
Patricia Schaefer is a staff writer for Business Know-How. She can be reached by email at pschaefer@businessknowhow.com.
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