Report: IRS Has More Than $110 Million in Unclaimed Tax Refunds

Typically you try to avoid the IRS as much as possible until it's time to file your annual tax return. I've prepared taxes part-time for years and many people avoid the IRS like they avoid the dentist. Others try to file taxes as soon as possible because they are due a large sum of money that they typically use to get caught up on bills and other annual expenses.

With the increases in gas prices and other fees nickel and diming all of us, you might be surprised to know that the IRS currently has over $110 million in unclaimed tax refunds, that reportedly belongs to over 115,000 Americans.

Every year the IRS receives thousands of returned income tax refund checks. Typically a tax payer has moved or misspelled an address on a tax return which significantly slows the return process. Over the past several years the amount of unclaimed tax return checks has increased as well as the amount of those checks. Some of this unclaimed money could belong to you or someone you know.

When the time comes to file your annual return be sure that no matter who completes your tax return that all of your personal information is correct. The major items to review are your social security number, your dependents social security numbers, your address and name. Incorrect information on your return can be the difference between receiving your refund by direct deposit within two weeks or months by mail.

If you believe you could be missing a past tax return, check with the IRS at www.irs.gov which will require information such as social security number, filing status and the exact refund. An easier alternative is to visit the database from the National Taxpayers Union at www.ntu.org which is easier to use and requires only your last name and the state you live in. The NTU site will still refer you to the IRS if you have a possible refund, it may be best to start there if you can't possibly remember the exact amount of your 2004 tax refund. You may want to check both sites and even call the IRS at 1-800-829-1954 to be sure you receive what belongs to you. Even if you believe you have always received all of your tax refunds it may be in your best interest to check the sites mentioned to make sure. Maybe you have more money for the holidays than you originally budgeted or perhaps you can take this opportunity to catch up on some bills. Either way you have nothing to lose.

Sources: http://www.irs.gov/newsroom/article/0,,id=175727,00.html and also http://www.irs.gov/individuals/article/0,,id=96596,00.html