That schematic looks plain wrong to me.
You should NEVER ground one side of the telephone line, the incoming wires are balanced and both above ground potential. I'm surprised the telephone line still works at all.
1. Use an isolated power supply or alternatively, use an isolated phone line transformer so you have isolation from the phone lines. This is not only important from a functional point of view, it might save your life if there's a static storm or direct lightning strike on the phone lines.
2. Look at the data sheet for the IC, it shows how to connect it's input circuit correctly. The present design seems to use differential inputs but then grounds one side which makes no sense. Single ended input uses fewer components too!
Brian.