In the United States, many people live for tax season knowing that they will get a great tax refund which they will be able to use on a necessary purchase or for something on their wish lists. Some people never file any income tax refund with the Internal Revenue Service because they made so little money during the year and so they think they are not entitled to income tax refunds. This could be misguided thinking because many of these people actually deserve refunds and may be mistakenly letting the government keep it. In fact, the Internal Revenue Service routinely has well over 100 million dollars of refunds that go unclaimed each year. On average, there is $3,116 owed per average unclaimed income tax record, which is an amount that most cannot afford to lose.
In the case of undelivered tax refunds, many people who file income tax refunds are usually owed refunds by the Internal Revenue Service. Statistics have shown that more than 30 million tax refunds are sent electronically or through the mail annually. Those paper checks can be so easily lost, however, and the government routinely receives some of them back through the post office because the address was incorrect or undeliverable. Still others get lost in the postal system. All individuals who believe they are missing a paper check should ensure that they have given the IRS the correct address.
Concerning unclaimed tax refunds, majority of the people are ignorant of the fact that the Internal Revenue Service owes them tax refunds even though they earned so little to be required to file a tax refund. However, what they may be forgetting is the Earned Income Tax Credit, which is available to low-income individuals with a certain number of people living in the household. This credit is still due to many individuals despite the fact that they did not pay any taxes.
Anyone who has missed out on their tax refund check still has hope. An opportunity of 3 years from the taxable year of the missing refund has been given to everyone to contact the IRS and claim their tax refunds. After three years, the money will be claimed by the government. Keep in mind that there are no penalties for filling a late return for those who are due refunds.
When you miss a tax refund, your reason for missing the tax refund will determine the way you will react to missing it. For example,
You can also hire a paid tax preparer to help you track down the missing tax refund, correct information on a tax refund that may be keeping the refund from arriving or filling out tax refund forms requesting the missing tax refund.
You can also stop tax refund issues from occurring in the future. The major reason given for tax refunds going missing is wrong addresses listed with the Internal Revenue Service. Before filing taxes for a new year, individuals should ensure that the IRS has the correct address listed. The most common problem when receiving electronic refunds is incorrect bank account information listed on the form. Individuals should always double-check their banking information before mailing in forms or sending them electronically.