Every year, individuals file taxes with the IRS on the gains that they made from work or financial transactions from the previous year. Typically, these people will either need to write a check to satisfy their tax bill or receive a refund. However, some individuals make the decision to not send in a tax form. They make the mistake of thinking that their wages are too low and don’t do anything with the IRS. Unfortunately, by having that mindset, they leave money with the IRS that they should be receiving.
Undelivered Tax Refunds
While many people request a direct deposit option for refunds, over 25 million refund recipients, request mail delivery via a paper refund check. This method increases the risk of a lost check. The only way to eliminate that is by receiving a refund electronically. Yet, millions of dollars are left unpaid to tax refund recipients each year. While the IRS is quick to contact individuals who owe taxes, they won’t let a person know that there is a refund waiting for them.
How To Get Unclaimed Money From The IRS
If the IRS is holding on to unclaimed money that a person is owed, that person can collect the money by filling out a request form and sending it to the IRS. However, this needs to be done within three years of the time that it relates to a yearly tax return. If a return is not sent to the IRS within that three-year requirement, the refund money is claimed by the United States Treasury. In addition, there is no penalty if a person files a return so that they can claim their refund. Penalties are only assessed when taxes have not been paid by April 15 on financial or work-related aspects of a person’s life from the previous year.
Tax Form Availability For Previous Years
If a person needs to file a tax form from the previous year, they can print the required form 1040 by going to https://wwwirs.gov/forms-pubs/prior-year. This webpage lists popular forms for prior years, required instructions and other publications. If a person is searching for a refund from three years prior, they’ll need to visit https://apps.irs.gov/app/picklist/list/priorFormPublication.html and conduct a more detailed search. This IRS website page allows a person to search for a specific keyword or number in the title of IRS product numbers.
Tax Refunds Paid Forward
Another way that a person can receive unclaimed money from the IRS is by simply having it deducted from a current tax bill that is owed to the IRS. If a person is filing their taxes and still has unclaimed money at the IRS that they have not received, it can be deducted from their current tax bill. If no taxes are owed by a person and they do claim a refund for a current year, the IRS will also include unclaimed money from the previous three years.
It’s good to know that the IRS will hold onto unclaimed money for a period of three years. However, it’s best if individuals know the rules regarding filing their taxes to avoid missing out on any unclaimed money.
Jim Treebold is a North Carolina based writer. He lives by the mantra of “Learn 1 new thing each day”! Jim loves to write, read, pedal around on his electric bike and dream of big things. Drop him a line if you like his writing, he loves hearing from his readers!