More than 346,000 New Jerseyans forgetting to take tax credit

| 29 Sep 2011 | 11:39

    The IRS estimates that more than 346,000 returns filed in New Jersey through early March failed to request the telephone tax refund. This amounts to an estimated $ 10.4 million or more that New Jerseyans have not requested. This represents 29 percent of New Jersey filers not requesting the refund. “If a taxpayer is entitled to receive the telephone excise tax refund and did not request it on the filed 2006 tax return should submit an amended return, Form 1040X, and complete line 15,“ said IRS spokesperson Gregg Semanick. “Anyone who paid long-distance excise taxes on landline, cell phone, Voice over Internet Protocol (VoIP), or bundled service that was billed for the period after Feb 28, 2003 and before Aug 1, 2006 is eligible for this refund,” said Semanick. The government stopped collecting the long-distance excise tax last August after several federal court decisions held that the tax does not apply to long-distance service as it is billed today. Federal officials also authorized a one-time refund of the federal excise tax collected on service billed during the previous 41 months, stretching from the beginning of March 2003 to the end of July 2006. The tax continues to apply to local-only phone service. 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 have to fill out one line on their return, and they don’t need to present proof to the IRS. If a taxpayer is not required to file a tax return, there is a new form (Form 1040EZ-T) that can be used to request this refund. Form 1040EZ-T and other tax forms are available at the IRS.gov Web site or requested by calling the IRS at 1-800-TAX-FORM. Form 1040EZ-T can be mailed to the IRS or it can be prepared and filed electronically at no cost by using Free File at IRS.gov. For more information on the Telephone Excise Tax Refund, go to the IRS Web site at IRS.gov.