According to the IRS, Federal income tax refunds totaling nearly$1 billion may be waiting for an estimated one million taxpayers who did not file a federal income tax return for 2011. In order to collect the refund, taxpayers must file a 2011 tax return no later than Wednesday, April 15, 2015. Time is running out
People most likely affected are students and/or part-time workers. Some people may not have filed because they didn’t make much money, but they may still be entitled to a refund according to IRS Commissioner John Koskine.
If no return is filed to claim a refund by April 15, 2015, the money becomes property of the U.S. Treasury.
The law requires the tax return be properly addressed, mailed and postmarked by the deadline. There is no penalty for filing a late return that qualifies for a refund.
Taxpayers seeking a 2011 refund need to understand that their checks may be held if they have 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.
In addition, it’dimportant to note that many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). For 2011, the credit is worth as much as $5,751. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2011 were:
- $43,998 ($49,078 if married filing jointly) for those with three or more qualifying children,
- $40,964 ($46,044 if married filing jointly) for people with two qualifying children,
- $36,052 ($41,132 if married filing jointly) for those with one qualifying child, and
- $13,660 ($18,740 if married filing jointly) for people without qualifying children.
Fidelity Tax Relief is available for free consultation over the phone and ready to help taxpayers with this issue. Time is running out and the deadline is Wednesday April 15, 2015.