The IRS issued a press release late last week indicating an estimated 984,400 taxpayers who did not file a tax return in 2009, are entitled to a slice of $917 million in tax refunds! The IRS estimates that half the potential refunds for 2009 are more than $500.
There is a catch though. To collect the 2009 refund, a return must be filed, properly addressed, mailed and postmarked to the IRS no later than Monday, April 15, 2013. Also, the IRS is informing taxpayers that checks may be held if they have not yet filed their 2010 and 2011 tax returns. Refunds could also be applied to other debts such as the following:
- IRS back taxes
- Tax debt to a state taxing authority
- Unpaid child support
- Past due federal debts such as student loans
It’s hard to imagine being entitled to a refund after not filing a tax return for three years yet every year, millions of dollars go unclaimed. The IRS believes some people don’t file because they earned too little income to require filing a tax return. Note: If a taxpayer earns under $9,600; they are not obligated to file. However, if taxes were taken out or they made quarterly estimated payments, it’s in their best interest to file a return to collect the refund. Additionally, many low-and-moderate income workers who did not file may not have claimed the Earned Income Tax Credit (EITC) which in 2009 was worth as much as $5,657 in credit.
However, don’t think for a minute it’s a good strategy not to file your tax returns because it’s not. Here are some facts you may want to consider:
All taxpayers (with a few exceptions) are legally required to file a tax return. If they don’t, they are subjecting themselves to major IRS tax issues including IRS penalties of $10,000 per year and possibly one year in jail. (Check out this post about non-filing/tax protester Randall Blair Johnson, who will spend 41 months in prison for willfully failing to file tax returns for three years).
It’s no secret the IRS has been more aggressive than ever about going after non-filers, and wealthy U.S. citizens with undisclosed assets in offshore bank accounts. If you have delinquent tax returns, you will want to hire a certified tax resolution specialist or tax attorney to help to get you back on track with the IRS. These tax experts will file your latest tax return, and any prior delinquent unfiled tax returns quickly for a proper reckoning of what you truly owe. These steps will help you become IRS compliant and can go a long way to avoid tax problems in the future.
More Tax Help, IRS News and Tax Relief Tips:
- Tax Expert Gives Tax Filing Info on Fox News
- Tax Resolution Services Offers Returning Veterans Free Tax Advice
- Family of Hip Hop Label Sings IRS Blues
- Tax Help Tip-Avoid the Delinquent Tax Return Trap
- Ask the Certified Tax Specialist – Small Business Back Taxes
Tags: delinquent tax returns, Earned Income Tax Credit (EITC), IRS back taxes, IRS penalties, IRS tax issues, offshore bank accounts, tax attorney, tax debt, tax problems, Tax Resolution University blog