Taxes over the telephone

Arianna Layton

The big April 15 deadline is creeping closer and closer, however this year, meeting the deadline may be as simple as a 10-minute phone call.

Taxes, the annual hair-pulling, pocket-stretching test of mathematical and direction-following skills, will be considerably easier this year for the fortunate people who qualify to file using TeleFile or On-Line Filing.

“If you received a TeleFile booklet in the mail — and you’re eligible to use it — do so. It will be the easiest way you ever filed a tax return,” said Robert E. Brazzil, director of the IRS Midwest District.

Last year, the first year of national operation for TeleFile, only single taxpayers with incomes limited to wages and interest qualified to use the telephone filing system.

This year, however, some married couples as well as recipients of unemployment compensation can also use TeleFile.

Only people who have received TeleFile packages in the mail can use TeleFile. More than 297,000 Iowa taxpayers were sent TeleFile packages this year, according to the Internal Revenue Service Midwest District.

To qualify to use TeleFile, a person must still have the same mailing address as the one printed on the TeleFile booklet he received, must have no dependents to claim and must have less than $50,000 of taxable income from wages, interest and unemployment compensation. However, if income from interest exceeds $400, TeleFile cannot be used.

TeleFile is the fastest and easiest way to file a 1040EZ tax return.

To use TeleFile, fill in the top half of the TeleFile Tax Record located in the center of the TeleFile booklet. Have this record and all W-2 forms from 1996 on hand and call the 24-hour, toll-free TeleFile number for your state.

A recorded voice will answer the call and ask for your customer service number, which is printed on the TeleFile Tax Record.

This number substitutes for your signature. Then the recorded voice will direct you through entering the information from the top half of your tax record and from your W-2 forms.

That’s all the work required. The TeleFile program then calculates your tax and tells you the amount of your refund or the amount you must pay by April 15.

It will also give you a confirmation number, which means the IRS has received your return.

Refunds should be received in about three weeks or, with direct deposit, in seven to 10 days.

People who use TeleFile should keep their completed worksheet as a personal tax record for use when applying for financial aid.

People who didn’t receive TeleFile packets can try using On-Line Filing, which Brazzil said is also “fast and easy” and will allow for a faster refund than paper-filed returns.

On-Line Filing allows people to prepare their tax returns using a modem.

To do so, one must obtain IRS-accepted software from a computer store or by downloading it from an on-line service.

A complete list of companies enrolled in the IRS On-Line Filing Program is available through the IRS Home Page at http://www.irs.ustreas.gov or directly via modem at 703-321-820.

After using the software to prepare the tax return, taxpayers transmit the file to an on-line filing company.

The company then converts the file to a format that meets IRS specifications and transmits it to the IRS.

Within 48 hours, the IRS will notify taxpayers if their return was accepted or needs corrections.

After it is accepted, taxpayers must send their W-2 forms to the IRS with a signed Form 8453-OL, which is provided by the tax preparation software or the on-line filing company.

On-line filing companies may charge a transmission fee.

“The fact is, whether you file your return through TeleFile or through an on-line service, you’ll make this year’s tax filing season a lot ‘less taxing,'” Brazzil said.