Optimizer has 3 News online.
Sonia Narvaez of CPA Accounting & Tax Services explained at a recent seminar that time is limited for claiming your share of the $1.1 Billion the IRS has for people who have not filed a 2007 tax return.
The Internal Revenue Service announced unclaimed refunds totaling more than $1.1 billion are awaiting over a million people who did not file a federal income tax return for 2007.
If you are one of the people who did not file a tax return with the IRS in 2007, you have until this year's tax deadline of April 18, 2011 to file your return for 2007. Estimates from the IRS say that most of these refunds are over $650.
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.
Sonia joked with the group that it is not that the U.S. Treasury could not use these funds given the deficit position our country is in, but most of those who did not have enough income to file a return in 2007 could probably put their share to good use.
Sonia reminded the group that for 2007 returns, the window closes on April 18, 2011. The law requires that the return be properly addressed, mailed and postmarked by that date. Sonia emphasized that there is no penalty for filing a late return qualifying for a refund.
There are some potential issues that could prevent you from getting your 2007 refund even if you file your return as described above. The IRS law includes a provision that taxpayers seeking a 2007 refund 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 taxes, unpaid child support or other past due federal debts such as student loans.
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, contact Sonia Narvaez of CPA Accounting & Tax Services .
Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for 2006, 2007 or 2008 should request copies from their employer, bank or other payer. If these efforts are unsuccessful, taxpayers can get a free transcript showing information from these year-end documents by calling 1-800-829-1040, or by filing Form 4506-T, Request for Transcript of Tax Return, with the IRS.
Sonia Narvaez of CPA Accounting & Tax Services can help you with your prior year returns and get you the maximum refund allowed.