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Warning from Uncle Sam

By Internal Revenue Service

The IRS is reminding about 121,000 Alabamians, who requested more time to file their 2006 tax return, that time is quickly running out. Warning from Uncle Sam

Published: Fri, October 05, 2007 - 10:57 am Last Updated: Fri, October 05, 2007 - 11:06 am

The Internal Revenue Service is reminding about 121,000 Alabamians, who in April requested more filing time, to avoid late filing penalties by sending in a 2006 tax return by Monday, Oct. 15, and to pay special attention to requesting the one-time phone tax refund on that return.

The IRS estimates that 524,000 Alabama filers missed out on over $15.7 million because they neglected to request the phone tax refund at all when they filed this year. Those now filing extended returns still have a chance to get the one-time refund without doing extra paperwork.

The agency is also alerting Alabamians that Oct. 15 is their last chance to file for 2006 the easy way – electronically. Electronic filing is not available after that date until the next tax filing season.

People who had little or no 2006 income and had a phone during the refund period (March 2003 through July 2006) may be able to request the phone tax refund using a short, easy form.

“If your 2006 income was low, it’s likely that you can request the phone tax refund using the quick and easy Form 1040EZ-T,” said IRS spokesman Dan Boone.

The simple 1040 EZ-T is exclusively for taxpayers whose 2006 income was below the filing requirement – often students and senior citizens – but who still qualify for the telephone tax refund. It takes just minutes to complete. Simply go to IRS.gov, click on the e-file logo, and use Free File to find a software provider offering the 1040 EZ-T at no cost.

Taxpayers who already filed but missed this refund may have a cell phone, but no landline, and mistakenly thought they did not qualify for the telephone tax refund. Many do. Qualifying taxpayers in this situation should use a paper Form 1040X to amend their return and request the telephone tax refund.

For taxpayers who requested an extension of time to file a 2006 return, it’s due Oct. 15, 2007. Be sure to check on the telephone tax refund. Nearly every household qualifies. Returns must be postmarked or electronically filed by midnight on Oct. 15 to avoid penalties. Taxpayers with an adjusted gross income of $52,000 or less generally qualify for free electronic filing of 2006 tax returns through Free File at IRS.gov. Electronic filing is available through the Oct. 15 extension deadline.

The telephone tax refund covers the three-percent tax paid on long-distance and bundled service from March 2003 through July 2006. It can add $30 to $60 — or even more — onto a taxpayer’s refund. So far this year, nearly 1.4 million Alabama filers have requested telephone tax refunds.

For more information and free electronic filing options, visit IRS.gov. Download Form 1040 EZ-T or the Form 1040X at IRS.gov, or order it from 1.800.TAX.FORM. Still have questions? Call 1.800.TAX.1040.