Time is Running Out for Non-Filers to Claim the Tax Refund They’re Entitled To
Last year, the government estimated that unclaimed refunds totaling approximately $1.2 billion were waiting to be claimed by about 1.3 million taxpayers who neglected to file a federal income tax return for 2004. While this year’s numbers haven’t been released yet, taxpayers still need to file their 2005 tax return with the IRS office no later than April 15, 2009 t0 be eligible for their tax refunds.
You will lose your tax refund if you do not file within 3 years of the due date of the tax return.
In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within three years, the money becomes property of the U.S. Treasury.
Last year, the IRS estimated that about half of the taxpayers who could claim refunds for tax year 2004 would get a refund of at least $552. The IRS website offers a state-by-state breakdown of estimates for individuals who failed to file a 2004 return.
There is no penalty assessed by the IRS for filing a late return qualifying for a refund. But you can’t get it unless you file the tax return. Don’t take a chance on losing your tax refund.
Taxpayers seeking a 2005 refund will have their their checks withheld if they have not filed their tax returns for 2006 or 2007. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to satisfy unpaid child support or past due federal debts such as student loans.
By failing to file a return, individuals stand to lose more than refunds of taxes withheld or paid during 2005. Many low-income workers may not have claimed the Earned Income Tax Credit (EITC). Although eligible taxpayers may get a refund when their EITC is more than what they owe in tax, those who file returns more than three years late would be able only to apply it toward the taxes they owe (if any). They would not be able to receive a refund if the credit exceeded their tax.
Current and prior year tax forms and instructions are available on the Forms and Publications page of the IRS Web site or by calling 1-800-829-3676.
If you have unfiled tax returns, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
More Tax Help, IRS News and Tax Relief Tips:
- 5 Reasons to File Delinquent Tax Returns: There’s Still Hope if You Haven’t Paid Your Taxes This Year
- Income Tax Relief Advice for the 35 Million Taxpayers Currently in Trouble with the IRS
- Obama Proposes Doubling Tax Law Enforcement Budget and Seeks $400 Million Funding Boost for IRS Enforcement Activities
- IRS News: Feds May Withhold Tax Refunds to Enforce Health Insurance Mandate
- How to Get IRS Tax Relief from Back Taxes or Unfiled Tax Returns
Tags: delinquent tax returns, income tax relief, non-filers, tax expert, tax resolution, unfiled tax returns
