Over $1 Billion in Unclaimed Funds at the IRS

The Internal Revenue Service says there is over $1 billion that has gone unclaimed from the 2011 tax year, which will soon become property of the U.S. government. The IRS is urging everyone to make sure they received their money from tax year 2011, go through back records if needed or look through old tax records. You will need to hurry up and claim your money or if you did not file, you can go back and file for that year, which is one way you can get your money without too much hassle. If you have moved or something happened, then you will have to directly contact the IRS to get another check reissued to your new address.

An interesting aspect of filing your taxes is that you only have 3 years to claim your refund, which means that the refunds for tax year 2011, which would have been filed in 2012, is about to expire. If you owe the government money however, the IRS can come after you for 7 years, and possibly longer if there is proof of any type of fraud committed. So it’s a little interesting how Americans only have the 3 years to claim their money, but if you owe the government, basically there is no time limit on that. This might also be why so much money has gone unclaimed, because Americans might think they have unlimited time to collect their money, just like the IRS has unlimited time to come after people committing fraud.

The IRS said that over 1 million American households did not file taxes for the year 2011, but are likely one of the millions owed money anyways. When you don’t file taxes due to no income coming in, it can be difficult to know you are actually owed money, especially when it is coming from the U.S government. Even if you had zero tax liability in tax year 2011, which could be if you were a student or only a part-time worker, you are still able to claim various credits, such as Earned-Income Credit. These credits, which vary in amount depending upon your personal financial situation, is not something you would even know you could claim unless you took the time to file your taxes. The refunds that are unclaimed range in amounts, but the majority of these refunds are well over $700 each, so it’s worth checking into to see if you are one of the lucky ones who is owed money from the government. This money goes back to the US Treasury immediately if it’s not claimed by April 15, 2015, which is tax day in the US.