Federal income tax refunds totaling $1 billion may be waiting for an estimated one million taxpayers who did not file a federal income tax return for 2011, the Internal Revenue Service announced on Wednesday.
The IRS estimates that $92.2 million is owed to 103,700 California residents, while $12.2 million is owed to 13,300 Nevada residents. The median income refund is near $700.
By law, if no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury. So to collect an unclaimed refund from 2011, taxpayers must file a 2011 tax return with the IRS no later than April 15.
There is no penalty for filing a late return that qualifies for a refund. However, the IRS said 2011 refund checks may be held if the taxpayer has not filed tax returns for 2012 and 2013. In addition, the refund will be applied to any amounts still owed to the IRS, or their state tax agency, and may be used to offset unpaid child support or past due federal debts, such as student loans.
Current and prior year tax forms and instructions are available on the IRS Forms and Publications page, or by calling 1-800-TAX-FORM (1-800-829-3676).
