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$1.2 billion available in unclaimed refunds

April 11, 2008

Did you file a return back in 2004? If not, you might want to put aside your 2007 taxes for a bit and get to work on the older 1040. You could end up with some added tax cash.

Tax_filing_material_2 Once again, reports the IRS, millions of taxpayers are in danger forever losing refunds simply because they didn’t file a return to get the money back.

In some cases, individuals had taxes
withheld from their paychecks or made tax payments on self-employment earnings, but they had too little income to require filing a
tax return that year.

But filing is the only way to get back that prepaid tax cash. And if these folks ignore the task for three years, then the Uncle Sam gets to keep their money. No questions asked. Permanently.

For 2004 returns, that three-year filing window will slam shut next Tuesday, April 15, 2008.

The amount of unclaimed 2004 tax money we’re talking about? Around $1.2 billion
owed to 1.3 million uber-procrastinators. The IRS
estimates that half of those who could claim 2004 refunds would receive more than $552.

File your old return now! If you think you might be entitled to some of that money, fill out a 2004 return (you can download the 1040 of your choice here) and get it postmarked and en route to the IRS by next Tuesday.

Don’t worry that you didn’t file all those years ago. There’s no
penalty for filing a late return where a refund is involved.

However, you must have filed returns in 2005 and 2006 to get the 2004 money. If you need to file those, too, you can download those years’ forms here.

And if in the subsequent years you ran up a tax or other government debt, such as unpaid child support or past due student loans, your 2004 refund will go toward those amounts first. Any leftover then will be sent to you.

You can read more about the unclaimed refunds in this IRS release. The announcement also has details on the earned income tax credit. If you were eligible three years ago for this tax benefit created to help lower-income taxpayers, claiming it on your 2004 return could increase the refund amount you might be owed.

The IRS also has put together a a state-by-state breakdown so you see how many filers in your state didn’t file three years ago.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Pay attention to computer generated notices from the IRS. The IRS computer system can generate hundreds of different notices as it processes through taxpayer accounts. Some of these notices are regarding simple clerical errors. Others indicate a big tax problem looming. Don’t ignore them.

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