Refund Statute Expiring Soon. Act Quickly!

• Posted on March 29, 2011
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If you have not yet filed your 2010 tax return and have a refund coming, time is running out! The IRS estimates that there are about 1.1 million taxpayers who have not filed their 2010 tax return and that there is approximately $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 18, 2011 to claim a refund for 2010.  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 2010.  In addition, 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 in 2010 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. 

When filing a 2010 return, the law requires that the return be properly addressed, mailed and postmarked by the April 18th date (normally the due date would April 15th, but it is a legal holiday in Washington, D.C. so the due date is extended until the 18th). There is no penalty for filing a late return qualifying for a refund. 

As a reminder, taxpayers seeking a 2010 refund should know that their checks will be held if they have not filed tax returns for 2008 and 2009.  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.