Nearly 1.1 Million taxpayers did not file a federal tax return for 2007. New York taxpayers account for 62,600 of the tax returns that have not been filed. These returns have an average refund amount of $706 and account for approximately $78,405,000. These individuals who did not file, must submit their income tax returns by April 18th 2011 or forfeit their refunds to the IRS.
Some people may not have filed because they had too little income to require filing a tax return 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.
The IRS warned that refunds will not be released for those who file their 2007 return late and have not filed the 2008 or 2009. So make sure to be compliant and submit those tax returns as well.
By failing to file a return, people stand to lose more than a refund of taxes withheld or paid during 2007. In addition, many low-and-moderate income workers may not have claimed 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. For more information, visit the EITC Home Page.
If you are unsure as to whether you filed or needed to file a return for 2007 please contact a tax professional today by calling 1-888-APRIL-15. It may be your money they are holding and if the returns are not filed by April 18th you may lose it forever.