US Taxes: Telephone Excise Tax Refund question + EITC!

[bluescreen]

Hi folks! This is my first post. I'm so glad this community exists.

My TAX TIME!! question is about the Federal Telephone Excise Tax... this is a $30-60+ refund anyone who paid the excise tax on their on their "long-distance or bundled phone service between Feb. 28, 2003, and Aug. 1, 2006" is entitled to

Comments

[munchkin1616]

I wouldn't do this if I were you... you would be taking a $30 refund and risking an audit and tons of fees if you get caught taking a refund you are not eligible for... doesn't seem worth the risk for a $30 refund!

(not that I'm saying a person should do illegal things for more than $30, just saying it's a huge risk for such a small amount with such big repercussions if you're caught)

[bluescreen]

Thanks; I know next to nothing about audits except that supposedly lower-income people get audited at a higher rate than higher incomes. Supposedly. :)

[silivrenglaur]

you possibly could get into trouble if you get audited, but you could always tell them that you thought you were eligible for it, and pay the $30 back. Usually when you get audited if they find an error in their favor you pay just like you would when filing your taxes.

[munchkin1616]

plus interest and penalties... not to mention that it'd clearly be a lie to say s/he thought s/he was eligible when this post says otherwise

[manuka]

The interest and penalties suck, because it takes the IRS a few years to figure out you cheated them. Been there, done that. Sucks. I had an employer in 1997 that filed both a W-2 for our wgaes, and an additional 1099 for a chunk of the same money they paid us (so they could claim the additional business expense, but without paying extra payroll taxes), and never sent the 1099s out. Naturally, the IRS came knocking on my door in 2000, saying "Um, you never claimed this 1099 on your taxes. Me: what 1099?". Much cursing at my former employer ensued, and there was nothing the IRS could do about it, since the company had gone bankrupt. On top of that, I couldn't prove that it was for the same income. That little adventure cost me about $2K on unreported income of $1700

[munchkin1616]

true, it's unlikely s/he'll get caught... but considering s/he clearly states that s/he knows s/he is not eligible for this deduction, I don't understand why it becomes a debate over whether or not it's likely to be caught instead of whether or not it's right or fair to everyone else who filled the forms out as correctly as possible that this person knowingly do it wrong.

[cmarie14]

My thought was - is there any way that if you can't figure out how to make the $30 come off that you could write a note on your return, crossing out amounts and writing in the amount of refund without the $30? I suppose that won't work if you e-file. We used TurboTax, and there was a specific question that dealt with it, if you could go back and find it. Therein may lie the problem. :)

[bluescreen]

Thanks for the tip; guess I'll just have to find another online program if this doesn't take it out. : )

[manuka]

The amazing thing is that a report came out recently that only about 30% of filers this year are taking the telephone tax credit. *boggle

[bluescreen]

Thanks... good tip. I've always done my state stuff on paper to scrounge, and also because I have multiple states income, part-time residencies, etc, so I'm not even sure if that'd work online.

Interesting, because I hadn't heard anything specific about BushCo's tax cut action significantly benefitting lower-income or average folks. Besides that $300 refund stunt a few years ago.

What do you mean by TurboTax's "calculations don't minimize your tax exposure"?

[jrsonday]

Check and make sure you're really not eligible as well. I thought I wasn't, but it turns out if you have ANY sort of phone service you are. Even cell phones.

[bluescreen]

Huh, seems deceptive that they don't specify anything about cellphone eligibility in the booklets.. Thanks!