Most of the time, the IRS is busy taking money from taxpayers. But every once in a while, we get an announcement like we had recently—the IRS has informed the public that they have over $900 million in refund money just waiting to be claimed.
This occurred because many taxpayers who were due a refund simply failed to file their return, meaning that the agency simply held onto it. As the IRS.gov press release reports:
Refunds totaling just over $917 million may be waiting for an estimated 984,400 taxpayers who did not file a federal income tax return for 2009, the Internal Revenue Service announced today. However, to collect the money, a return for 2009 must be filed with the IRS no later than Monday, April 15, 2013.
The IRS estimates that half the potential refunds for 2009 are more than $500.
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 2009 returns, the window closes on April 15, 2013. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund.
Note that this money is gone for good on April 15 of this year. If you haven’t filed your 2009 tax return and are due a refund, by all means get your return filed and claim your refund! As noted in the press release, there is no penalty for filing late as long as you were due a refund. If you have questions or would like assistance relating to this or any other tax matter, please don’t hesitate to get in touch with us today.