About 1 million US taxpayers from all 50 states failed to filetheir returns in 2009, but unless they do so before April 15, theywon’t be getting their checks.
In the US, individuals making less than $9,750 a year are notrequired to file taxes. Some people are unaware that federal taxeshave been taken out of their paychecks and that the IRS owes themmoney. Others choose not to file returns because they don’t believethey would get much cash back, and don’t consider the paperworkworth their time.
The IRS gives taxpayers three years to claim a refund, afterwhich Uncle Sam gets to keep the money. There is no penalty forfiling a late return, but hundreds of thousands of Americans mightnot even be aware of the fact that they qualify.
As a result, the US Treasury could be making more than $917million from unclaimed refunds from 2009.
And for those who do file a late return, they will beexperiencing a delay in payment – especially if they also failed tofile returns for 2010 and 2011, the IRS says. The Treasury is alsoable to withhold refunds if taxpayers have outstanding debt, likeunpaid student loans, child support and federal or state taxes.
Low-and middle-income Americans, primarily those with children,may also qualify for Earned Income Tax Credit (EITC). But one infive US residents are unaware that they qualify for the EITC andmay therefore be overpaying the IRS, rather than filing for thededuction.
The IRS announcement regarding the number of unclaimed refundscomes just one month before the deadline to file for them, givingtaxpayers only a short amount of time to determine if they areeligible. But even though the IRS has so many unclaimed refunds, itstill claims to struggle with the high number of tax returns.
The “Where’s My Refund?” tool on the IRS website has beenunavailable numerous times this season, and the IRS blamestaxpayers for clicking on it too much and overwhelming the system.The agency has urged taxpayers to only check their refund once aday, or limit use of their website to weekends.
In February, an IRS spokesperson told the Associated Press thatit was receiving more than 1 million tax returns every day and thatthe most common question the agency is hears is about people’srefunds.
“I think what we’re seeing is just part of the naturalevolution in the refund process,” IRS spokesman Terry Lemonstold AP. “Twenty-five years ago, you desperately checked themailbox every day.”
But by already promising delays in late tax returns and claimingto have an overwhelmed system, taxpayers who file for a 2009 returncould be waiting months for their money.
