IRS Has $1 Billion for People Who Have Not Filed a 2008 Income Tax Return

By ASY-DLR

February 24, 2012

WASHINGTON — Refunds totaling more than $1 billion may be waiting for one million people who did not file a federal income tax return for 2008, the Internal Revenue Service announced today. However, to collect the money, a return for 2008 must be filed with the IRS no later than Tuesday, April 17, 2012. The IRS estimates that half of these potential 2008 refunds are $637 or more. 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. For 2008 returns, the window closes on April 17, 2012. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund. The IRS reminds taxpayers seeking a 2008 refund that their checks may be held if they have not filed tax returns for 2009 and 2010. 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. By failing to file a return, people stand to lose more than refunds of taxes withheld or paid during 2008. Some people, especially those who did not receive an economic stimulus payment in 2008, may qualify for the Recovery Rebate Credit. 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. The thresholds for 2008 were: • $38,646 ($41,646 if married filing jointly) for those with two or more qualifying children, • $33,995 ($36,995 if married filing jointly) for people with one qualifying child, and • $12,880 ($15,880 if married filing jointly) for those with no qualifying children. For more information, visit the EITC Home Page on IRS.gov. Current and prior year tax forms and instructions are available on the Forms and Publications page of IRS.gov or by calling toll-free 800-TAX-FORM (800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for 2008, 2009 or 2010 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 ordering it on IRS.gov, filing Form 4506-T, or by calling 800-908-9946. Individuals Who Did Not File a 2008 Return with a Potential Refund State Individuals Median Potential Refund Total Potential Refunds ($000)* Alabama 18,400 $641 $15,738 Alaska 5,800 $641 $5,952 Arizona 29,000 $558 $24,913 Arkansas 9,600 $620 $8,152 California 122,500 $595 $112,201 Colorado 20,500 $589 $18,909 Connecticut 12,500 $697 $13,893 Delaware 4,200 $644 $3,784 District of Columbia 4,000 $642 $3,791 Florida 70,400 $650 $66,974 Georgia 35,800 $581 $30,661 Hawaii 7,600 $714 $8,307 Idaho 4,700 $541 $3,878 Illinois 40,800 $692 $40,712 Indiana 21,800 $664 $19,590 Iowa 10,600 $658 $9,295 Kansas 11,500 $631 $10,084 Kentucky 12,300 $640 $10,501 Louisiana 20,500 $662 $18,859 Maine 4,000 $579 $3,248 Maryland 24,600 $641 $22,591 Massachusetts 23,900 $699 $22,957 Michigan 33,300 $660 $30,903 Minnesota 15,200 $584 $12,772 Mississippi 9,900 $591 $8,254 Missouri 21,600 $593 $18,213 Montana 3,600 $599 $3,192 Nebraska 5,100 $623 $4,371 Nevada 14,500 $619 $13,381 New Hampshire 4,300 $733 $4,518 New Jersey 31,300 $716 $31,185 New Mexico 8,000 $611 $7,420 New York 60,300 $686 $61,240 North Carolina 30,800 $558 $24,997 North Dakota 2,000 $625 $1,895 Ohio 36,400 $622 $31,018 Oklahoma 16,800 $620 $14,787 Oregon 18,500 $527 $14,819 Pennsylvania 38,700 $695 $35,565 Rhode Island 3,400 $674 $3,040 South Carolina 12,200 $547 $10,158 South Dakota 2,300 $669 $2,234 Tennessee 18,400 $626 $16,130 Texas 96,200 $689 $97,057 Utah 7,800 $536 $6,676 Vermont 1,700 $647 $1,410 Virginia 30,800 $624 $28,670 Washington 29,900 $705 $32,138 West Virginia 4,300 $687 $4,068 Wisconsin 14,100 $592 $11,885 Wyoming 2,600 $773 $2,919 Grand Total 1,089,000 $637 $1,009,905 *Excluding the Earned Income Tax Credit and other credits.