IRS Issues Statement Regarding Telephone Tax and Nonfilers

The Internal Revenue Service (IRS) has issued the following statement regarding the issues raised by the recently amended complaint, Sloan et al v. United States of America, filed in the U.S. District Court of the District of Columbia.

“The IRS wants to make it as easy as possible for all telephone customers to get a refund of the long-distance excise taxes they paid. This includes low-income people who are often not required to file federal income tax returns.

“As stated in Notice 2006-50, the IRS is developing a very simple, straight forward form (Form 1040 EZT) that low-income people can use next year to get a refund of federal excise taxes. We recognize there are many people who have no filing requirements and we want to make sure that these people get the refund they deserve. This special form will allow taxpayers to claim their refund even if they have no tax filing requirement. This form will be solely for the telephone tax refund.

“The IRS will be working with the telecommunications industry, community groups and the media to get the word out about this simplified method of getting a federal excise tax refund. In addition, the IRS continues to work with its community partners to inform low-income people about other valuable, but often-overlooked tax breaks, such as the earned income tax credit and the child tax credit. Many low-income people should consider filing a regular 2006 federal income tax return, so they can take advantage of these benefits, along with the federal excise tax refund.”

More information about the class action law suit is available in Planned Phone Tax Refund Rules Allegedly Unlawful, Unfair & Exclusionary.

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