Lost and Found: The IRS and Your State
Time is Nearly Gone for the 2007 Refund
These funds represent money that the IRS received for taxpayers and for which no tax return was filed. When you have money withheld from your salary or any other taxable distribution such as pension, IRA distribution or social security, it is paid to the IRS and they effectively set up an account with your name on it. You indicate the amount of taxes withheld by others on your 1040 at time of filing.
Some people in 2007 may not have filed a tax return because their income was below the threshold limit and they did not realize that they had any money withheld. Some may simply have forgotten that they worked at all and received income. The reason is not important and when you are due a refund, the IRS does not impose a failure to file penalty.
The refund that the IRS is referring to does not include any of the tax credits that may have been applicable that year, such as the Earned Income Credit or the Child Tax credit.
If this jogs your memory and you think that the IRS owes you money the remedy is to simply file a return, using the proper 2007 forms and tables and mail it to the IRS. The return must be postmarked no later than April 18, 2011 in order for you to receive the refund. However, the IRS will not release the money to you unless you have filed a return for 2008 and 2009 or can indicate that you do not need to. Furthermore, if you owe the IRS any money for back taxes or are delinquent on payments for a student loan or child support the IRS will apply the refund to those debts.
If you do not have your W-2 or 1099s the IRS can help you by providing you with copies or a transcript of those documents. They can do that for 2008 and 2009 as well so you may be able to apply for all three years, if applicable.
Even though you may not receive the money, you are at least making your slate cleaner without having to use your current cash.
You may obtain the forms and instructions for prior years by visiting IRS.gov or by calling 1-800-TAX-FORM.
When you file the federal return do not forget to file the return for your own state because they may have money for you as well.
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