The IRS has announced that there are unclaimed refunds totaling approximately $1.2 billion for folks who failed to file a federal income tax return for 2004. However, due to the statute of limitations, in order to collect the money, 2004 federal income tax returns must be filed no later than April 15, 2008.
Why would there be money just sitting there? In most cases, taxpayers had taxes withheld from wages, or made payments against their taxes out of self-employed earnings, but failed to file a federal income tax return. Additionally, some taxpayers may be eligible for the refundable Earned Income Tax Credit.
Be aware that you can’t just file for a refund in 2004, though. If you have not filed for 2005 or 2006, your check will be held. Additionally, if you owe for child support, back taxes or other federal debt like student loans, you cannot collect the money.
What happens to the money if you don’t claim it? It goes back to Uncle Sam!
Bet much of this is from undocumented workers afraid to (or ignorant on how to) file a return.