Nearly one million taxpayers are due tax refunds for the 2009 tax year, and they will lose their money if they fail to file by the April 15, 2013 deadline, the IRS said in a press statement issued Thursday, March 14. Half the potential refunds, the IRS estimates, are more than $500.
People that had earned income in 2009, but did not file a return, are due not only money paid in through payroll withholdings, but may also be eligible for several hundred dollars in Earned Income Credit. Taxpayers in all 50 states, including more than 100,000 Californians and 63,000 New Yorkers, have potential refunds waiting, but the three-year window for claiming a refund is closing next month.
According to the IRS, many taxpayers fail to file because they have little income and are not required to file, yet often these taxpayers have paid withholding taxes that can only be refunded by filing a tax return. Additionally, many working individuals and families with low incomes qualify for the Earned Income Credit, which can be as much as $5,657 for the 2009 tax year.
Taxpayers are not assessed a penalty for filing a late return when a refund is due. The IRS may withhold refunds if the taxpayer is delinquent in child support payments or federal student loans.
If taxpayers due refunds for the 2009 tax year fail to file by April 15, 2013, their refunds will become the property of the U.S. Treasury. Forms for filing a 2009 return may be found at the IRS website.