IRS Holding $2.5 Billion In Unclaimed Tax Refunds

by Mike Godfrey, Tax-News.com, Washington

11 February 2004

Unclaimed refunds totalling more than $2.5 billion are awaiting nearly 2 million people who failed to file a 2000 income tax return, the Internal Revenue Service announced on Monday.

According to the IRS, half of those who could claim refunds would receive more than $529. In some cases, individuals had taxes withheld from their wages, or made payments against their taxes out of self-employed earnings, but had too little income to require filing a tax return. Some taxpayers may also be eligible for the refundable Earned Income Tax Credit.

“The clock is running if you want to get your refund,” commented IRS Commissioner Mark W. Everson. “People who aren’t required to file sometimes overlook that they had tax withheld. Don’t wait until it’s too late. We want all taxpayers to get the refund they’re due.”

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. For 2000 returns, the window closes on April 15, 2004.

There is no penalty assessed by the IRS for filing a late return qualifying for a refund.

Recommended