IRS Looks to Distribute $760 Million in Unclaimed Tax Refunds – Are you one of the lucky ones?

The Internal Revenue Service announced today that refunds totaling almost $760 Million have yet to be claimed by an estimated 918,600 taxpayers for the tax year 2010 alone. The lucky individuals have until April 15, 2014 to file a tax return to claim their refunds - so time is running out – contact us today to help you with your tax filings!

“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.

By failing to file a tax return, taxpayers stand to lose more than just their refund of the taxes that were withheld or paid during 2010, the IRS pointed out. In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit. For 2010, the EITC is worth as much as $5,666. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2010 were $43,352 ($48,362 if married filing jointly) for those with three or more qualifying children, $40,363 ($45,373 if married filing jointly) for people with two qualifying children, $35,535 ($40,545 if married filing jointly) for those with one qualifying child, and $13,460 ($18,470 if married filing jointly) for people without qualifying children.

Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for 2010, 2011 or 2012 can request copies from their employer, bank or other payer. Alternatively, taxpayers can get a free transcript showing information from these year-end documents by using the Get Transcript service on IRS.gov.

The IRS provided a state-by-state breakdown of the number of individuals who did not file a 2010 tax return with a potential tax refund, and the average and total dollar amounts of the refunds:

State or District Estimated Number of Individuals Median Potential Refund Total Potential Refunds*

Alabama

15,700

$574

$12,473,000

Alaska

4,700

$649

$4,810,000

Arizona

23,800

$508

$17,517,000

Arkansas

8,400

$562

$6,667,000

California

86,500

$519

$69,752,000

Colorado

17,100

$567

$14,061,000

Connecticut

11,700

$620

$10,304,000

Delaware

3,800

$573

$3,126,000

District of Columbia

3,500

$604

$3,080,000

Florida

56,800

$593

$48,407,000

Georgia

28,400

$539

$22,504,000

Hawaii

6,200

$586

$5,413,000

Idaho

3,500

$490

$2,604,000

Illinois

37,900

$626

$32,696,000

Indiana

19,600

$570

$15,478,000

Iowa

9,200

$576

$7,050,000

Kansas

9,300

$522

$6,986,000

Kentucky

11,500

$576

$8,975,000

Louisiana

17,500

$603

$15,579,000

Maine

3,500

$502

$2,373,000

Maryland

20,700

$575

$18,002,000

Massachusetts

21,000

$560

$17,856,000

Michigan

29,200

$597

$24,259,000

Minnesota

12,700

$516

$9,582,000

Mississippi

8,500

$556

$6,769,000

Missouri

17,900

$514

$13,153,000

Montana

2,900

$534

$2,338,000

Nebraska

4,500

$528

$3,368,000

Nevada

11,400

$570

$9,156,000

New Hampshire

3,800

$602

$3,245,000

New Jersey

29,500

$639

$26,712,000

New Mexico

7,200

$572

$5,915,000

New York

57,400

$623

$50,543,000

North Carolina

24,300

$494

$17,538,000

North Dakota

1,900

$600

$1,551,000

Ohio

32,100

$560

$24,508,000

Oklahoma

15,100

$585

$12,246,000

Oregon

14,300

$519

$10,359,000

Pennsylvania

37,400

$614

$31,009,000

Rhode Island

3,000

$598

$2,472,000

South Carolina

10,200

$532

$7,756,000

South Dakota

2,100

$558

$1,605,000

Tennessee

16,300

$559

$12,839,000

Texas

80,600

$588

$71,998,000

Utah

6,100

$518

$4,705,000

Vermont

1,600

$519

$1,136,000

Virginia

26,300

$568

$22,376,000

Washington

24,800

$640

$23,033,000

West Virginia

4,100

$626

$3,534,000

Wisconsin

10,900

$516

$8,423,000

Wyoming

2,200

$648

$2,045,000

Totals

918,600

$571

$759,889,000

 * Excluding the Earned Income Tax Credit and other credits.

 

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