How to claim $2.2 billion in old tax refunds
The 1.8 million Americans who didn't file a 2003 return may be due some money. You could still get a check from the IRS . . . if you hurry.
By Bankrate.com
Forget about your 2006 tax return for a minute. If you didn't file one for 2003, you might be missing out on some money from back then. But you've got only a few more weeks to claim it.
Apparently, three years ago 1.8 million individuals decided they had better things to do than file their 2003 tax returns, even though they were due refunds. In total, more than $2.2 billion from that tax year is still sitting in the Internal Revenue Service account.
Taxpayers can still get their old refund checks, which the IRS says could be more than $700 for some folks. But the claim, via a 2003 Form 1040, must be made by April 17. After that, the federally allowed three-year window of opportunity from the original filing deadline, which was April 2004, closes forever, and Uncle Sam gets to keep the cash.
* Click here to find out where your state ranks in unclaimed refunds.
The IRS estimates that the median refund -- meaning half of the checks will be larger and half smaller -- is $611. Some of the money is likely owed to taxpayers in every state and the District of Columbia, as well as to residents of U.S. territories and military filers who didn't file returns that year.
California is home to the most taxpayers -- around 200,000 -- who didn't send in returns three years ago, accounting for more than $236 million of the total unclaimed pot. But New Hampshire residents and members of the military are likely owed the largest checks. The Granite State's median unclaimed refund is $709; the median for service members is $785.
Not an uncommon oversight
Despite the staggering amount, the IRS says that unclaimed refund money isn't that unusual.
Each year, some people don't file a return because they don't owe taxes. But without the documentation, these folks won't get any refunds they're due. The IRS doesn't send refunds unless it gets a Form 1040, 1040A or 1040EZ that details just how big the government's check should be.
Other taxpayers had income tax withheld but didn't have to file a return because they had earned too little. But the only way they can get the withheld money back is to file a return.
Then there are individuals who were eligible for but didn't take the earned-income tax credit. This is a tax break for workers who don't earn much. It can actually rebate cash to qualified filers -- even those who owe nothing. In 2003, individuals qualified for the earned-income credit if they made less than $11,230 and were childless, earned less than $29,666 and had one child, or earned no more than $33,692 and had two or more kids at home.
No penalty . . . and no return
There is no penalty for late filing when the taxpayer is due a refund. However, if you subsequently ran up an IRS bill that you didn't pay or you owe another debt of concern to the government, such as child support or a student loan, you may not get all of your 2003 refund. In these cases, once the nonfiler finally gets a return to the IRS, the tax cash will be applied to outstanding charges before any remainder is refunded.
If you think some of the refund stash is yours, you can download a 2003 Form 1040 from the IRS Web site. If you need an old 1040A or 1040EZ instead, you can find them at the agency's index of past-year forms. Be sure to check out the 2004 and 2005 documents if you didn't file a return for those years either. The IRS won't send you your 2003 cash unless you filed in subsequent years.
Taxpayers who prefer the phone to the personal computer can call 1-800-829-3676 to request an old form. You probably should ring up the IRS as soon as possible to allow ample time for processing and to make sure the forms get to you in time to meet the April deadline. Once the forms are in hand, taxpayers who need help completing prior year returns or in gathering past income records may call the IRS help line at 1-800-829-1040.
But whatever tax-filing moves you have to make to claim your cash, make them soon. After April 17, it stays in Uncle Sam's pocket.
This article was reported and written by Kay Bell for Bankrate.com.
Published March 17, 2007
