Tax Tip of the Week | No. 243 | Time Is Running Out....
Tax Tip of the Week | March 26, 2014 | No. 243 | Time Is Running Out....IRS Looks to Distribute $760 Million in Unclaimed Tax Refunds
The Internal Revenue Service is giving the Mega Millions jackpot some serious competition, with tax refunds totaling $760 million ready to be handed over to an estimated 918,600 taxpayers who did not file a federal income tax return for 2010.The IRS estimates that half the potential refunds for 2010 are for amounts greater than $571. To collect the money, a tax return for 2010 must be filed by Tuesday, April 15, 2014.“The window is quickly closing for people who are owed refunds from 2010 who haven’t filed a tax return,” said IRS Commissioner John Koskinen in a statement. “We encourage students, part-time workers and others who haven’t filed for 2010 to look into this before time runs out on April 15.”Some taxpayers 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 tax 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 the property of the U.S. Treasury.For 2010 tax returns, the law requires that the return be properly addressed, mailed and postmarked by April 15, 2014. There is no penalty for filing a late return qualifying for a refund.The IRS is reminding taxpayers who are seeking a 2010 refund that their checks may be held if they have not filed tax returns for 2011 and 2012. In addition, the refund will be applied to any amounts still owed to the IRS or their state tax agency, and may be used to offset unpaid child support or past due federal debts such as student loans.Give us a call if you know of someone who didn’t file a tax return in 2010.
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