| Every year, the IRS announces that it is holding | | | | return for 2002, the money will default to the federal |
| unclaimed tax refunds. Taxpayers have a limited time | | | | government. Importantly, there is no penalty associated |
| to claim the $2 billion dollars the IRS is currently holding. | | | | for filing late if a taxpayer is due a tax refund. This is |
| Three years is a magical number when it comes to | | | | common misconception among non-filers. |
| tax returns. It refers to the statute of limitations on | | | | One group of taxpayers that almost always has a |
| certain tax issues such as when an audit can occur, | | | | large percentage of non-filers is military personnel. |
| when refunds can be claimed and when amended tax | | | | Obviously, it is a bit hard to file from Afghanistan, but |
| returns can be filed. The IRS is currently holding $2 | | | | now is the time to do so for 2002. Members of the |
| billion dollars in unclaimed tax refunds for the 2002 tax | | | | military that failed to file in 2002 are owed an average |
| year and taxpayers must file their claims by April 17, | | | | of $749 per taxpayer. |
| 2006 or lose the refunds forever. | | | | The IRS releases demographic on the areas in the |
| Approximately 1.7 million people are due refunds out of | | | | United States where refunds are due. To this end, |
| the $2 billion dollars currently held by the IRS. These | | | | California and Texas are the states where the most |
| people have refunds due because they failed to file | | | | individuals are due refunds while Idaho has only 6,200 |
| tax returns for 2002. This occurred most likely | | | | people due a refund. |
| because people felt they did not make enough money | | | | Nobody finds filing taxes an exciting prospect. The pain |
| to warrant filing a tax return. By failing to file, however, | | | | is much less, however, is you know you are due a |
| they have left $570 on average with the IRS. | | | | refund. If you failed to file in 2002, you might be |
| If a taxpayer fails to claim the tax refund by filing a tax | | | | throwing away a nice little chunk of change. |