Can virtually anyone claim the Federal telephone excise tax credit?

Question

I know someone who didn't have a phone during the stated period, will the IRS know the difference or care if this person claim's the credit?

Answer 1

I heard on NPR today that the IRS is already inspecting returns for abuse. On the other side of the coin, sadly, many people who could legitimately claim this deduction haven't heard the good news and aren't even claiming it. As I heard it, the rule is that you can claim it if you had long distance charges from February, 2003 through August, 2006. There's a standard, flat claim of $30 - $60, or you can document the tax you paid and use actual figures. One soul claimed so much telephone tax paid that a quick calculation showed that s/he made over $1 million worth of calls during that period.

Will the IRS come after you if you make a fraudulent claim? Maybe. Their attack is usually a mix of random audits and going after big, newsworthy abuses.

Please vote: Did this help?

Answer 2

sure, it truly is genuine. if you're actually not required to document a go back and also you had a telephone from March 1993 on, then you definately favor to flow to the library and %. up a 1040T. only placed you Social protection #, call deal with and any dependents you've and verify the field that asks in case you had a telephone even as the bill took result. if you're filing taxes besides, verify the field on the again of the 1040 which applies to the Federal Excise Tax credit. it is a one time credit and it truly is $30 for a million man or woman (your self) $40 for 2, $50 for 3 and a optimal of $60 for 4. enable easily everyone study about this, fantastically the elderly that does no longer commonly document taxes.

Answer 3

Legally, they can't claim the credit if they didn't have a phone during that period. Would it very possibly slip through? Yes, it probably would.

Answer 4

Be careful. It has been triggering audits.