This is a big number: $1,041,576,000.
That $1 billion is the amount the U.S. government owes to more than 1.1 million taxpayers who did not file federal tax returns for 2011.
You have to file a return – even if you don’t owe any taxes – in order to claim a refund. “People could be missing out on a substantial refund,” Internal Revenue Service Commissioner John Koskinen said.
The IRS figures the half of the refunds nationwide exceed $698. In Minnesota, about 16,500 taxpayers are missing more than $14.1 million. That’s an average refund of $857, with half of the refunds worth at least $632.
There’s some urgency here. The time to file a 2011 return and claim a refund ends on April 15, 2015, three years after the return was due. If a 2011 refund isn’t claimed by then, it goes into the U.S. Treasury’s vault, according to federal tax law.
Why would taxpayers leave their refunds on the table for the government to grab? Well, some simply might not have made much money in 2011 and were not required to file a return that year. So, they ignored it.
Perhaps others feared a late filing penalty. However, the IRS is clear. Late filing penalties do not apply if a taxpayer qualifies for a refund.
We at EricJohn Ltd. can help you retrieve those 2011 tax refunds – as well as any missing refunds from 2012 and 2013 tax years. We also look for tax credits that can increase your refunds. Until April 15, there’s no need to leave 2011 dollars in government hands for lack of a tax return!