IRS Unclaimed Tax Money - Find Out If You Have Tax Money To Claim

• Author: Jessica Williams
• Posted: 2024-03-16

The best money is free money, and many people consider the IRS refunds they’re issued free money. It’s not free money. It’s your money, and you paid it in to the IRS with a portion of your hard-earned income throughout the year. When you’re due a refund, it’s because you sent the IRS too much money throughout the year. It’s because of this they owe you money, and this money is rightfully yours. It’s not free because you earned it. That’s why everyone should always file an income tax return at the end of the year to reclaim the money owed to them.

The IRS currently has more than $1 billion in unclaimed funds in an account that’s rapidly growing interest for them and missing from taxpayer’s bank accounts. This money is money you paid. You deserve to get it back when you realize it’s missing, but you only have three years. While the IRS has much longer than this to claim money from you when you owe them, you are limited to only three years.

If you want to know if a portion of that $1 billion in unclaimed funds belongs to you, it’s time to find out if the IRS owes you by going through your income tax filing history. Have you sent in a tax return in the past three years? If you did not, it’s time to file now. You might be owed money if you never filed a return, and it’s time to file and get that money returned to you.

Why Didn’t You File?

There are many reasons someone might not file a tax return. One of the most common reasons is they did not make enough money to meet the minimum requirements for filing. One of the worst pieces of advice anyone can take is to forgo filing if they did not make enough money to meet this requirement. If you paid any income taxes on any amount of money, you’re due a refund and must file an income tax return.

Another common reason people do not file returns is they’re not sure they need to file one. Children who live with their parents and earn income from their jobs might not file a return because their parents claim them as dependents on their own tax return. This is fine, but it’s still money you’re not getting back in the form of a refund if you’re not filing. You can’t claim yourself as a dependent if someone else can, but you can file a return and get your tax withholding back.

No Penalties

If the IRS owes you money and you did not file an income tax return, you can still file up to three years late. Do not be afraid. The IRS does not penalize anyone due a refund if they fail to file a return. There is no penalty because they’re growing their own bottom line off the money they owe you sitting in a bank account somewhere accruing interest as each day passes. It’s time to file, but it must be done before the close of the tax filing season three years later if you’re due a refund.

Returned Checks

Sometimes taxpayers are due a refund from the IRS for a mistake they made one year they aren’t aware of and the check they mail is returned. Sometimes a refund check issued to a taxpayer after they file their return is sent back to the IRS if someone moves or it’s noted incorrectly. There is a change of address form available on the IRS website you should fill out and send to the IRS. If there is any money that’s been returned to them on your behalf, they’ll send it to the new address when it’s received.

You could have unclaimed money sitting in an account at the IRS’ office just waiting on you to claim it if you haven’t filed or you’re living somewhere new. It doesn’t hurt to file a change of address form to see if a check comes your way, and it’s a good idea to file any returns you failed to file in the past three years. All refunds will be issued upon receipt and verification of the returns as they are filed.