Refund Statute Expiring

Article Highlights:

• 2011 refunds are in jeopardy 
• Filing deadline 
• Lost benefits 
• Mailing instructions 

If you have not yet filed your 2011 federal tax return and have a refund coming, time is running out! The IRS estimates that there are in excess of 1.1 million taxpayers who have not filed their 2011 tax returns and that there is in excess of $1.1 billion dollars of unclaimed refunds available for those taxpayers. If you fall in this category, you need to act quickly because the return must be filed by April 15, 2015 to claim a refund for 2011. Otherwise, the money becomes the property of the U.S. Treasury.

By failing to file a return, people stand to lose more than a refund of taxes withheld or paid during 2011. Many low- and moderate-income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families with incomes below certain thresholds, which for unmarried individuals in 2011 were $40,964 for those with two or more children, $36,052 for people with one child, and $13,660 for those with no children. Each amount is $5,080 more for married joint filers. In addition, parents eligible to claim the refundable portion of the child tax credit will forfeit that benefit if they don’t file a return.

When filing a 2011 return, the law requires that the return be properly addressed, mailed and postmarked by the April 15th date. There is no penalty for filing a late return qualifying for a refund.

As a reminder, taxpayers seeking a 2011 refund should know that their checks will be held if they have not filed tax returns for 2009 and 2010. In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past-due federal debts such as student loans.

If this office can be of assistance in bringing you current with your tax filing obligations, please call. 

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