IRS Holding $2 Billion In Unclaimed Tax Refunds!

Every year, the IRS announces that it is holding unclaimed tax refunds. Taxpayers have a restricted time to declare the $2 billion dollars the IRS is currently holding.

3 years is a magical number when it comes to tax returns. It describes the statute of limitations on specific tax issues such as when an audit can occur, when refunds can be declared and when modified tax returns can be submitted. The IRS is currently holding $2 billion dollars in unclaimed tax refunds for the 2002 tax year and taxpayers need to submit their claims by April 17, 2006 or lose the refunds forever.

Around 1.7 million individuals are due refunds out of the $2 billion dollars presently held by the IRS. These individuals have refunds due because they failed to submit tax returns for 2002. This took place more than likely because individuals felt they did not make adequate money to call for filing an income tax return. By stopping working to submit, nevertheless, they have left $570 on typical with the IRS.

If a taxpayer fails to declare the tax refund by submitting an income tax return for 2002, the money will default to the federal government. Significantly, there is no penalty associated for filing late if a taxpayer is due a tax refund. This prevails mistaken belief amongst non-filers.

One group of taxpayers that almost constantly has a big percentage of non-filers is military personnel. Undoubtedly, it is a bit hard to file from Afghanistan, but now is the time to do so for 2002. Members of the armed force that stopped working to submit in 2002 are owed approximately $749 per taxpayer.

The IRS releases market on the locations in the United States where refunds are due. To this end, California and Texas are the states where the most people are due refunds while Idaho has only 6,200 people due a refund.

Nobody finds filing taxes an interesting possibility. The pain is much less, nevertheless, is you know you are due a refund. If you failed to submit in 2002, you may be throwing away a great little portion of modification.