“The window is quickly closing for people who are owed refunds from 2010 who haven’t filed a tax return,” IRS Commissioner John Koskinen said in a release. “We encourage students, part-time workers and others who haven’t filed for 2010 to look into this before time runs out on April 15.”
The IRS estimates that half the potential refunds for 2010 are more than $571.
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 reminds taxpayers seeking a 2010 refund that their checks may be held if they have not filed tax returns for 2011 and 2012. In addition, the refund will be applied to any amounts still owed to the IRS or their state tax agency, and may be used to offset unpaid child support or past due federal debts such as student loans.
By failing to file a return, people stand to lose more than just their refund of taxes withheld or paid during 2010.
Also, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit. For 2010, the credit is worth as much as $5,666. The EITC helps individuals and families whose incomes are below certain thresholds.
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