New Yorkers reminded to file for Telephone Excise Tax refund

by Kristina Martino / The Citizen

Monday, March 5, 2007 9:41 AM EST

When filing this year's income tax return, don't miss the opportunity to receive between $30 and $60 just for owning a phone.
According to an Internal Revenue Service official, thousands of New Yorkers aren't claiming their Telephone Excise Tax Refund. The refund is a one-time payment available on the 2006 income tax return and designed to refund previously collected long distance telephone taxes, according to the IRS Web site. Individuals, businesses and tax-exempt organizations are eligible to request it.

“After conducting a survey with three weeks worth of tax returns from New Yorkers, we found that more than 406,000 of the 1.5 million people failed to request the refund,” said Dianne Besunder, of IRS media relations.

In just three weeks, New Yorkers lost roughly $12.2 million for not claiming the refund. Each filer is qualified to receive a $30 to $60 standard deduction, Besunder said.

“We can't say for certain that everyone has a telephone but most people do have them,” Besunder said.

To qualify for the refund, the filer must have had or have either a landline phone, cell phone or phone through the Internet from March 2003 to the end of July 2006. Filers can claim the standard deduction or fill out an extra form to complete on their own.

A standard deduction was created so filers don't have to dig through old phone bills to calculate their phone tax.

The IRS also created the form 1040EZ-T for people to fill out who don't need to file taxes, including senior citizens and low-income earners, but are entitled to receive a refund, Besunder said.

Across the U.S., about 30 percent of all taxpayers didn't request the telephone tax refund so far this year, according to a news release from the IRS.

In 1898, during the Spanish-American War, the U.S. created the phone tax as a way to raise revenues for the war. Until August 2006, the federal government continued to collect the tax.

“Telephones were a luxury then, unlike today,” Besunder said. “Because of the statute of limitations, we can only refund back so far.”

Staff writer Kristina Martino can be reached at 253-5311 ext. 238 or kristina.martino@lee.net

Federal and state tax forms

€ Federal forms and publications can be mailed by the IRS. Individual and married filers can call (800) 829-1040; business filers should call (800) 829-4933. You can also call the IRS office in Syracuse at 448-0807. The office is located at 100 South Clinton St., and is open from 8:30 a.m. to 4:30 p.m. Monday through Friday. Walk-ins are welcome. To get federal forms and publications mailed to you by ordering them over the Internet, or to download federal forms and publications, visit www.irs.gov

€ State forms and publications can be requested by contacting the Albany office of the state Department of Taxation and Finance at (800) 462-8100. Forms and publications can be downloaded at the department's Web site, www.tax.state.ny.us

The Citizens' Say

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There are 2 comment(s)

Tax Savy wrote on Mar 5, 2007 7:14 PM:

" Most people don't realize that a flat tax would make most people pay more in taxes. Unless of course you want a flat tax of 9-10%.Knucklehead "

Totally Unreal wrote on Mar 5, 2007 5:52 PM:

" The tax code in this country has become so convoluted that it's simply ridiculous. How many people and how much money did it take for these rocket scientists to come up with this change to the tax code? If they went to a flat tax, there wouldn't be a need for this levity. Think of the amount of money that would be pumped back into the economy with a flat tax if there were no need for federal bean counters justifying their jobs. "

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