IRS HAS $760 MILLION IN REFUNDS AVAILABLE FOR TAXPAYERS WHO DID NOT FILE IN 2010

SIGMA TAX PRO RECENTLY LEARNED THAT THE IRS JUST ANNOUNCED IT HAS $760 MILLION FOR TAXPAYERS WHO DID NOT FILE A TAX RETURN IN 2010, BUT RETURNS MUST BE FILED BY APRIL 15, 2014.

A recent announcement by the IRS should be of interest to tax professionals across the United States. IRS commissioner John Koskinen advises any taxpayer who has not filed their return for 2010 to do so before April 15th of this year. He notes that it is often students and part time workers who have not filed their returns. Sigma Tax Pro advises tax professionals to check with their clients to ensure they filed a return for 2010 and if not to file before the upcoming deadline.

The law provides taxpayers with a three year window in which to claim refunds, the 2010 tax return deadline was originally April 15th, 2011 for this reason the window will close this year on April 15th marking exactly three years. Often taxpayers who earned relatively small amounts of money do not realize they may be eligible for a refund. However the IRS estimates that half of the outstanding refunds are more than $571 and there are close to one million refunds still waiting to be claimed. Furthermore there is no penalty for claiming a late refund, many taxpayers may be under the impression that they will incur penalties for filing late.

Tax pros should advise their clients that their 2010 refund checks can be withheld if they have not filed returns for 2011 and 2012. Moreover if the taxpayer has unpaid child support, outstanding student loans or other federal debt the refund can also be withheld. For low income taxpayers the potential loss is even greater as they will be unable to claim any Earned Income Tax Credit (EITC) which can be as much as $5,666.

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