IRS Tax Tip: Didn't File? Still, Money May Be Waiting for You

Did you know that the IRS has tens of millions of dollars in checks each year that are unclaimed? They call this "missing money," and there are two reasons why money might go unclaimed:

1. People who don't file do not realize they still may claim money; and

2. Problems with delivery. For tax year 2010 the IRS estimated that New Yorkers were entitled to $24 million dollars in undeliverable refund checks because of incorrect or changed addresses.

So, if you earned income in the last three years, but you didn’t file a tax return because your wages were below the filing requirement, the Internal Revenue Service may still have some money for you.

If you've moved and have not received money, or if you suspect you or the IRS may have entered your address information incorrectly, the Internal Revenue Service may still have some money for you.

Here’s what you need to know about these two types of “missing money” and how to claim it:

Unclaimed Refunds

Some people earn income and may have taxes withheld from their wages but are not required to file a tax return because they have too little income. In this case, you can claim a refund for the tax that was withheld from your pay. Other workers may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit, but must file a return to claim it.

· To collect this money a return must be filed with the IRS no later than three years from the due date of the return.

· If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury. 

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

· Current and prior year tax forms and instructions are available on the Forms and Publications page of www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

· Information about the Earned Income Tax Credit and how to claim it is also available on www.irs.gov.

Undeliverable Refunds

Were you expecting a refund check but didn't get it?

· Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.

· You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.

· You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).

· If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address. 

"We conduct a media campaign to contact such taxpayers each fall in an attempt to reach out to the owners of the refunds," said Dianne Besunder, IRS spokesperson. "These refunds are reissued to the taxpayers once they contact us with a good address. We also will reissue the checks if we receive a new tax return with a good address in a subsequent year.   

"Undeliverable refunds can be issued at any time but unclaimed refunds must be applied for by filing a tax return within three years of the due date of the return."