Las Vegas, NE (PressExposure) February 07, 2012 -- Americans not filing a Tax Return in 2012, will not be able to make a claim for the approximately $1.1 billion of refunds that are unclaimed from the Internal Revenue Service ("IRS"). In fact, the IRS states that there are 1.1 million Americans that would be entitled to these funds but who still have not filed their 2007 tax returns. They need to file their 2007 return to qualify for the refund, according to the IRS about 50% of the 2007 refunds are $640 or more.
Time is running out, filers tax returns for 2007 must be filed with the IRS no later than Monday, April 18, 2012, in order to quality to collect the unclaimed money.
Even if you are no longer resident in the US and live abroad, you can still qualify for these Unclaimed Refunds.
California has the highest population that has not filed a 2007 Return for a potential refund. They have 124,000 citizens who have not filed and that the Median Potential Refund is $597 from $129,205 waiting to get claimed. The next highest is Texas with 91,700 citizens not filing with a Median Potential Refund of $692 from $104,801 waiting to be found. The Lowest number is North Dakota with 1,600 people that have a Median Potential Refund of $597 from $1,877 of unclaimed refunds.
"This new found money could be a great way to help many individuals and some of the money they may owe on such things as credit cards and bank loans" says Edward Palonek, who is the founder of an online unclaimed money search service called foundmoney.com, which specializes in providing information on the whereabouts of unclaimed money.
Some people may feel that they do not have to file tax returns because they had no or too little income, even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.
This means, that tax payers must file their 2007 tax returns no latter that April 18, 2011. Even though their 2007 return was not filed on time, there is no penalty for filing a late return that qualifies for a tax refund. However, at the same time you must file you 2008 and 2009 return otherwise the IRS will withhold the 2007 unclaimed refund.
Even if you may owe some taxes the the following years, a taxpayer can use the refund to offset these amounts. Taxpayers can even use the unclaimed refund to offset unpaid child support or past due federal debts such as student loans.
There are other benefits to keeping up with filings. "Programs exist for low and moderate income families that can put money back in their pockets", says Palonek.
One such program, is the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds, which in 2007 were $39,783 for those with two or more children, $35,241 for people with one child, and $14,590 for those with no children.
To maximize tax refunds and obtain the up to date figures for the EITC credits simply go to the IRS website to get all the money that would be owing to you
The IRS has all current and past year tax forms and instructions on their website IRS.gov. If you do not have Forms W-2, 1098, 1099 or 5498 for 2007, 2008 or 2009 you should request copies from your employer, bank or other payer.
"In difficult times like these, every dollar counts so make sure to maximize your refund and make a claim for that new found money", says Palonek.