US Taxpayers Accumulate Nearly $1 Billion In Unclaimed Refunds
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The U.S. Internal Revenue Service is urging nearly 1 million Americans to file their federal tax returns for 2009 by April 15 or risk losing out on $917 million in unclaimed tax refunds, reported the Associated Press on Friday, with about half of the potential refunds larger than $500, estimated the agency.
The U.S. Internal Revenue Service is urging nearly 1 million Americans to file their federal tax returns for 2009 by April 15 or risk losing out on $917 million in unclaimed tax refunds, reported the Associated Press on Friday, with about half of the potential refunds larger than $500, estimated the agency.
The sum accumulated came from a three-year window, after which the money would be turned over to the Treasury Department if left unclaimed.
The IRS said that there would be no penalty for filing a late return that qualified for a refund, however refunds may still be delayed if taxpayers also failed to file returns for 2010 and 2011.
[quote]Additionally the government would also withhold or deduct tax refunds if an individual had unpaid federal and state taxes, as well as unpaid child support and past-due federal debts, such as student loans.[/quote]California residents were the leading source of unclaimed refunds, with about $92,590 owed to an estimated 100,700 taxpayers. Texas and New York, were the next two highest states, while Vermont had the least with a possible $1,400 total in unclaimed refunds.
The IRS advised citizens to submit their tax forms either through the Forms and Publications page of IRS.gov or by calling 800-TAX-FORM (800-829-3676). Taxpayers missing Forms W-2, 1099 or others should also request copies from the provider.
If these efforts are unsuccessful, taxpayers can also get a free transcript showing information from these year-end documents by filing Form 4506-T, Request for Transcript of Tax Return, with the IRS or by calling 800-829-1040.
Related: U.S. Tax Whistleblowers Snag Record $125.4 Million In Payouts Last Year
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In a statement on their website, the IRS said that some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments.
The IRS also urged low-and-moderate income workers to claim their Earned Income Tax Credit (EITC), which could be worth as much as $5,657 from 2009. For more information, visit the EITC Home Page.
Separately, MarketWatch reported last week that more than 600,000 taxpayers are having their refunds delayed by up to six weeks because of a software glitch.
H&R Block, the nation’s largest tax preparer, confirmed that its software failed to fill out a mandatory field on Form 8863, which is used to claim educational credits. The glitch is likely to affect about 10 percent of the 6.6 million tax returns containing Form 8863, IRS spokeswoman Michelle Eldridge said.
