Want to Know if you have Unclaimed Tax Refund or Check from the IRS?
How would you feel if at a certain point in time you are very broke and you immediately remember of someone who owes you money and you are sure of their capability of paying back the money is high and that they are just waiting for some few legal procedures am sure that you would automatically smile to that particular idea and immediately walk to that person and start the procedure no matter how long it would be and no matter how many documents it would require am sure as far as you have them you will immediately go and get started. Well this exactly what the Internal Revenue Service (IRS) wants people to do yet people are ignorant about it. It want people to go and follow the procedure and get their money back. Someone may wonder what funds am talking about that are being held by the IRS. Here are the answers.
Unclaimed tax refund is the money that has been deducted as tax from some individuals who area not supposed to be taxed simply because they did not make much money during the year and the individuals have not yet gone to claim it from the IRS. There are also others who earned a certain amount which the IRS considers (nontaxable) that is, if an individual earns that amount or below they should not file returns. People follow the advice and fail to file their returns forgetting that there might be some taxes deducted from their pay checks.
With this various tax credits and deduction, filing returns would do one a great favor since it would help in getting back some of those deductions made but the refund is done if one files returns thus making filing of returns eligible for both the people who make money that is taxable and those that don’t. Unclaimed tax refund can therefore be explained as the amount of money owed by the federal government to a taxpayer but which has not yet been paid to the taxpayer and the reason is that the tax payer did not file a return demonstrating their entitlement to it.
One may wonder on how to check if one has unclaimed tax refund.Well,it is not easy since individual's tax information is private and the IRS can not release any information about who is owed refunds and how much but the good news is that it is possible.To find out if one is owed a refund,one is supposed to contact the local IRS or the national agency office.
When one realizes that the IRS owes them money and can actually get it back, there are some procedures that one should undertake and also should consider some factors. Once you realize that you are owned money, you need to collect a federal income tax refund form, fill it and file it with the IRS three years from the due date of the request return. The money is then absorbed by the treasury.
Another document that one requires are the tax documents mostly known as the W-2s. Once one provides these documents together with the correct address that they are currently using, they get their refunds in form of a cheque.
In some other countries, the IRS operates a system which allows taxpayers to track their refund that the IRS owes them. The system is available on the IRS website. This system however requires the taxpayer to know the exact amount they are owed, provide their name and social security number.
The IRS works with given deadlines. IRS gives people a three-year window period following the return due date to claim the tax refund. For instance, if one was to claim a 2003 tax year refund, the return should be postmarked on or before 2007 tax year. Once individuals fails to file for a refund within the proper time frame, they lose their right to claim it at all and it becomes property of the country’s treasure.
There are advantages as well as disadvantages related with the claiming of the unclaimed funds from the IRS. Some of the advantages include;
Individuals who don’t have the knowledge of the income bracket that is supposed to pay taxes can get their money back after filling the return. This money would have been absorbed by the government which would not be fair to the low income earner.
The IRS offers long duration for the deadlines and this gives people ample time to claim their refunds thus making it easier for the citizens.
The entire process and information is private and the government cannot make it public thus reducing the chances of people being coned.
The disadvantages associated with the whole process include The legal process to obtain the refund is rather long and hence time consuming. The information is considered private and hence the government cannot open an open website and give a list of those they owe and hence some people end up losing their claims due to lack of knowledge.
Wrong address leads to loss of the claims It is time that citizens take responsibility of each and every single coin that they earn and legally belongs to them and take a step in claiming it back from the IRS. Check with the IRS offices of any unclaimed refund and claim it back. It’s your right to get that which is dully ours, remember if you go past the deadlines, your money goes back to the federal government. The time to take action is now. Let’s reclaim that which was lost.