Millions are currently owed lost funds. Of that, unclaimed tax money is prevalent in the chunk of lost money. The IRS revealed that it is currently sitting on millions of unclaimed funds in the form of tax refunds, as more than 1 million people failed to file a federal income tax return. Aside from unclaimed tax refunds, the U.S. unclaimed money pile alone is well in the billions.
According to the recent shocking revelations by the Internal Revenue Service (IRS), the agency is currently holding millions of dollars in the form of unclaimed tax refunds. The reason behind such high amount of unclaimed IRS money is that a whooping number of people, more than 1 million, somehow forgot to file a federal income tax return.
The data of IRS suggests that nationally there is more than $1 billion in unclaimed refund money waiting for people who did not file a return for the year 2008 alone. This further means that the total amount of unclaimed funds will be lot more. The IRS has asked people to file their 2008 federal income tax return before April 17, to collect their unclaimed tax refunds. As per the reports, nearly half of the tax refunds of 2008 are not less than $637.
Financial experts believe that many people either forget to file a return don’t file a tax return thinking that their income was too low to file a return. Whereas they already had some tax withdrawn from their wages and some even had already made quarterly tax payments on the basis of estimation. As per the law, if the taxpayers fail to file a tax return, then he/she is provided a three-year window for claiming unclaimed IRS money. In case no return is filed within these three years, then the money is turned over to the U.S. Treasury.
A significant number of taxpayers also don’t have a bank account to get their returns or rely on a so-called alternative financial institution for getting the unclaimed tax refunds. Besides, in many cases the IRS is not able to refund the money to taxpayers due to errors or wrong mailing address errors. As most Americans often plan to pay down their debts by using the money that they get in the form of tax returns, having unclaimed tax money may lead to financial susceptibility.