The Internal Revenue Services has announced that it has unclaimed refunds totaling more than $1.3 billion for nearly 1.4 million people who did not file a federal income tax return for 2006.
To collect, you have to file a return for 2006 with the IRS no later than Thursday, April 15, 2010.
The IRS estimates the median unclaimed refund for 2006 to be $604.
“In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund,” said a statement by the IRS. “If no return is filed … the money becomes property of the U.S. Treasury.”
Some may not have filed because they had too little income to require filing a tax return, although they had taxes withheld from their wages or they made quarterly estimated payments.
IRS says taxpayers seeking a 2006 refund will have their checks withheld if they have not filed tax returns for 2007 or 2008. Moreover, the refund will be applied to any amount still owed to the IRS, and it can be used to satisfy unpaid child support or past-due federal debts such as student loans.
Many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC), the IRS said. The EITC helps those with incomes that are below certain thresholds, which in 2006 was $38,348 for those with two or more children; $34,001 for people with one child and $14,120 for those with no children.
For more information, visit the IRS EITC home page.
IRS prior-year tax forms are available here.
