Unclaimed IRS Money Reaches the Billions

The IRS is holding billions in unclaimed tax refunds, which belong to thousands of Americans. This year’s report of Income Revenue Service (IRS) suggests that the unclaimed IRS money has reached billions, waiting to be claimed by millions of tax payers across the states. All those people who are still to file their federal tax returns for the year 2008 should start filing the returns, soon as they might be missing more than $1 billion of unclaimed tax refunds. As per the reports, almost half of the taxpayers who haven’t filed for returns for 2008 can look forwards to getting around $637 each.

The IRS believes that many people don’t file a tax return thinking that their income is very low, however many times they are not aware that the taxes were already deducted from their income. The IRS has asked all taxpayers to file for the income tax returns for 2008 and collect it before April 17 2012. If anyone fails to file for return before this period, then any unclaimed money with the IRS will become the property of U.S. Treasury as per the law, which states that after the three year window provided to the taxpayers to file the returns all the unclaimed funds are turned over to the treasury.

However, the taxpayers have to take into account the terms and conditions prescribed by the IRS for getting the refunds. If you wish to seek a refund for 2008, then it is imperative for you to file tax returns for the year 2009 and 2010 as well, as otherwise, your checks might be held by the IRS. Even if you are late to file for the tax return, you won’t be penalized or asked to pay a fine for a late return. Moreover, if you have any past dues towards IRS, due child support, student loans, or any other federal debts, then the amount of 2008 will be applied to the amount owed by you.

The IRS website has provided latest lists of the refund potential and refund median for the year 2008 state by state for the information of the people. According to the IRS listings, Wyoming tops the list of the states listing for unclaimed IRS money with maximum median potential refund amounting to $773, while the taxpayers of Oregon State have the lowest median potential refund, amounting to just $527 per person.

If you wish to file income tax returns for current and previous years, then you can get all the information on IRS.gov, which contains forms and instructions on the Forms and Publications page of the website. Alternatively, you can also call their toll free number - 800-TAX-FORM (800-829-3676). In case, you have missed Forms W-2, 1098, 1099 or 5498 for 2008, 2009 or 2010, you can get copies for the same from your employer, bank or other payer. Besides, this IRS also offers free assistance via Volunteer Income Tax Assistance and the Tax Counseling for the Elderly, or TCE, programs, to help people find their unclaimed tax refunds. These are set to provide complete tax related guidance to low- and moderate-income taxpayers, senior citizens, people with disabilities and non-English-language speakers.