SALT LAKE CITY, Utah (ABC 4 News) – Refunds totaling more than more than $1 billion may be waiting for one million people who did not file a federal income tax return for 2008, according to the Internal Revenue Service.
To collect the money, a return for 2008 must be filed with the IRS no later than Tuesday, April 17, 2012. If a return is not filed by the deadline, unclaimed funds will become property of the U.S. Treasury.
Here in Utah, 7,800 taxpayers have $6,676,000 in potential refunds, with a median potential refund of $536.
In some cases, people may not have filed their 2008 returns 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