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IRS Has $1.1 Billion for People Who Have Not Filed a 2007 Income Tax Return | Tax Tip of the Week | No. 86 March 30, 2011

Posted by bradstreetblogger in : Tax Tip, Taxes, Taxes, Uncategorized , trackback

How to Collect Money That May be Waiting for You

Refunds totaling more than $1.1 billion may be waiting for nearly 1.1 million people who did not file a federal income tax return for 2007, the Internal Revenue Service announced recently.  However, to collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011.  For Ohio, the IRS estimates there are 33,200 unfiled returns with an average refund of $620.

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. 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 a refund within three years, the money becomes property of the U.S. Treasury.

For 2007 returns, the window closes on April 18, 2011. The law requires that the return be properly addressed, mailed and postmarked by that date. You cannot e-file a prior year tax return. There is no penalty for filing a late return qualifying for a refund.

The IRS reminds taxpayers seeking a 2007 refund that their checks will be held if they have not filed tax returns for 2008 and 2009. In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans.

By failing to file a return, people stand to lose more than a refund of taxes withheld or paid during 2007. In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds, which in 2007 were $39,783 for those with two or more children, $35,241 for people with one child, and $14,590 for those with no children.

If you know of anyone who did not file a tax return for 2007, have them contact us immediately.  As we mentioned in a Tax Tip last year, be sure to check on elderly taxpayers to make sure they have filed tax returns.

As always, give us a call if you have any questions.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

…until next week.

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