Unclaimed refunds totaling $5.1 million are awaiting 5,400 Delawareans who did not file a federal income tax return for 2005.
To collect the money, a 2005 return must be filed with the IRS by April 15.
“In Delaware, the IRS estimates that half of those who could claim refunds would receive more than $592,” said Delaware’s IRS spokesperson Gregg Semanick.
Nationwide, unclaimed refunds totaling approximately $1.3 billion are awaiting more than a million people who did not file a 2005 return.
“Especially in these tough economic times, people should not lose out on money that is rightfully theirs," said IRS Commissioner Doug Shulman. “People should check their records, especially if they had taxes withheld from their paychecks but were not required to file a tax return. They may be leaving money on the table, including valuable tax credits that can mean even more money in their pockets.”
In cases where a return was not filed, the law gives most taxpayers a three-year window of opportunity for claiming a refund. If no return is filed within that time, the money becomes property of the U.S. Treasury. For 2005 returns, the window closes on April 15, when they must be postmarked and mailed. There is no IRS penalty for filing a late return qualifying for a refund.
Taxpayers seeking a 2005 refund will have their checks held if they have not filed returns for 2006 or 2007. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to satisfy unpaid child support or past due federal debts such as student loans.
By failing to file a return, people stand to lose more than refunds.
Many low-income workers may not have claimed the Earned Income Tax Credit (EITC). Generally, unmarried people qualified for the EITC if they earned less than $35,263 in 2005 and had more than one qualifying child living with them, earned less than $31,030 with one qualifying child, or earned less than $11,750 and had no qualifying child. Limits are slightly higher for married people filing jointly.
Tax forms and instructions are available on the “Forms and Publications” Web page of IRS.gov or by calling (800) TAX-FORM (1-800-829-3676). Information about the EITC and how to claim it is also available on IRS.gov. Taxpayers who need help also can call the toll-free IRS help line at (800) 829-1040.
