IRS: Many R.I. taxpayers overlook phone refund

The U.S. Internal Revenue Service is urging Ocean State taxpayers to see whether they qualify for this year’s special one-time telephone excise tax refund. About 29 percent of early filers in the state have not requested the refund, which means nearly 30,000 Rhode Islanders have missed savings totaling almost $809,000, the IRS said.
“Many taxpayers are overlooking this special refund and the chance to get a bigger refund,” said Peggy Riley, IRS media relations specialist for New England. “We encourage taxpayers to spend a few extra minutes reviewing their tax return … a little extra time can mean a bigger refund check.”
The federal government in August stopped collecting the excise tax on long-distance calls and authorized a one-time refund of the federal excise tax collected on long-distance service billed between March 2003 and July 2006. The tax continues to apply to local phone service.
To request the standard refund – ranging from $30 to $60, based on personal exemptions – taxpayers must fill out just one extra line on their tax returns, and don’t need to present any proof to the IRS. Taxpayers who have all their phone bills and other records can request the actual amount of excise tax paid.
In other news, the IRS said, early filings from Rhode Island through the third Friday in February show e-File returns rising nearly 5 percent and self-prepared e-File returns rising 8 percent compared with the same period last year.