Refund Statute Expiring: Don’t Miss Out!

Article Highlights:

  • The refund statute expires on April 15, 2014 for unfiled 2010 returns.
  • Unfiled returns will lose out on refundable credits.
  • Refunds may be offset by unpaid child support, past due student loans, and back taxes.

If you have not yet filed your 2010 tax return and have a refund coming, time is running out! The IRS estimates that there are more than 1 million taxpayers who have not filed their 2010 tax return; approximately $1 billion of unclaimed refunds available for those taxpayers. If you fall in this category, you need to act quickly because the return must be filed by April 15, 2014 to claim a refund for 2010. Otherwise, the money becomes the property of the U.S. Treasury.

People stand to lose more than a refund of taxes withheld or paid during 2010 by failing to file a return. In addition, many low- and moderate-income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC provides financial assistance to individuals and families with incomes below certain thresholds. In addition, taxpayers may also qualify for the refundable child and education credits.

When filing a 2010 return, the law requires that the return be properly addressed, mailed, and postmarked by April 15. There is no penalty for filing a late return that qualifies for a refund.

As a reminder, taxpayers seeking a 2010 refund should know that their checks will 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 and may be used to offset unpaid child support or past due federal debts, such as student loans.

Please give this office a call as soon as possible if you have not filed your 2010 return. Sufficient time is needed to prepare and print the return and for you take it to the post office to send with proof of mailing.

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