The Internal Revenue Service is reminding about 137,700 Minnesotans, who in April requested more time to complete a tax return, to avoid late filing penalties by filing 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 837,000 Minnesota filers missed out on at least $25 million because they neglected to request the phone tax refund at all when they filed this year. Those taxpayers now filing extended returns still have a chance to get the one-time refund without doing extra paperwork.
The agency is also alerting Minnesotans 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.
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.
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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. The telephone tax refund covers the 3-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 2 million Minnesota filers requested telephone tax refunds.
For taxpayers who requested an extension of time to file a 2006 return, it's due Oct. 15. Be sure to check on the telephone tax refund. Nearly every household qualifies.
Taxpayers with an adjusted gross income of $52,000 or less generally qualify for free electronic filing this year through Free File at IRS.gov. Electronic filing is available through the Oct. 15 extension deadline.
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.
