Friday, August 31, 2012

2.2 Billion Dollars in Unclaimed Tax Refunds About To Expire

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For all the complaining about taxes, it is rather remarkable that taxpayers leave so much money on the table each year. The Irs recently announced that 2.2 billion dollars in refunds are about to expire unclaimed.

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How is 2.2 Billion Dollars in Unclaimed Tax Refunds About To Expire

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April 17, 2007 represents Christmas for the federal government. Why? If 1.8 million Americans don't wake up, the federal government will get a gift of 2.2 billion dollars. How would you like to find that under the tree!

The 2.2 billion dollars is a 2003 issue. Specifically, taxpayers failed to claim the money in the form of tax refunds for the 2003 tax filing period. How many taxpayers? About 1.8 million. This equates to an midpoint reimbursement of ,222. Obviously, some are smaller and others bigger, but it is a nice chunk of change.

Given the amount of the tax reimbursement pool, one might wonder how so many habitancy could have failed to claim their refunds. The reply can be found in a integrate of areas.

1. habitancy who failed to file returns because they didn't earn a lot.

2. habitancy who switched jobs and didn't suspect the taxes paid by both employers.

3. habitancy who moved and didn't tell the Irs. Tax refunds are not forwarded in the mail.

4. habitancy who can claim the earned earnings tax credit.

5. Self-employed habitancy who overpaid safe bet regular taxes.

So, why is there a deadline to file for the refunds? Tax law is such that you have three years to look back in time on tax issues. As a result, the April 17th deadline is three years from April 15th 2004, the date you should have filed a tax return for your 2003 taxes. The extra two days have to do with the fact the 15th is a Saturday this year.

If you complain about your taxes, you should go back and check your 2003 return. If you are due a reimbursement and let it expire, you have nobody to blame but yourself. Just think, you could apply it to the amount you owe this year!

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