IF YOU earned income in the last few years but didn’t file a tax return because your wages were below the filing requirement, the Internal Revenue Service may have some money for you. The IRS also has millions of dollars in checks that are mailed but returned each year as undeliverable.
There are two types of refunds that may be waiting for you:
1. Unclaimed refunds:
• You had withholding but did not file to claim it.
• You may be entitled to Earned Income Credit but did not file to avail of it.
2. Undelivered Refund:
• You filed a return but did not receive your refund.
• You may have moved but did not advise the IRS of your new address.
1. Unclaimed Refunds:
If you were employed and had taxes withheld from your wages but did not file because you had too little income and were not required to, the IRS has money waiting for you. You may even be entitled to the refundable Earned Income Tax Credit, but you must file a return to claim it. Here’s how:
• You must file a return within three years from the due date of the return.
• If you don’t, your refund becomes the property of the US government.
• You won’t be assessed penalties for filing a late return that qualifies for a refund.
• You may access tax forms and instructions on the Forms and Publications page of www.irs.gov.
• You may also call 800-TAX-FORM (800-829-3676).
• Go to www.irs.gov for information on the Earned Income Tax Credit.
2. Undeliverable Refunds:
You filed a return but did not receive your refund.
• Refund checks are mailed to your last known address.
• Checks are returned to the IRS if you move without notifying the IRS or the US Postal Service.
• You may be able to update your address with the IRS on the “Where’s My Refund?” at www.IRS.gov.
• You have to provide an updated address if there is an undeliverable check within the last 12 months.
• Inform the IRS of your correct address by filing Form 8822, Change of Address, at www.irs.gov.
• You may also call 800-TAX-FORM (800-829-3676). You’ll learn from this call that you have a virtue that friends admire in you – patience.
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Victor Santos Sy, CPA, MBA, provides professional services in accounting and tax controversy including IRS audit defense and offers in compromise. He also advises clients on choices of entity including corporations for small businesses and LLCs for rentals. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation at 704 Mira Monte Place, Pasadena, CA 91101. The firm celebrates its 35th anniversary this year. You may email tax questions to Vic at [email protected]. You are welcome to visit our website for more than 300 tax tips at www.victorsycpa.com.