IR-2006-31, Feb. 21, 2006
WASHINGTON — Unclaimed refunds totaling more than $2 billion are awaiting about 1.7 million people who failed to file a federal income tax return for 2002, the Internal Revenue Service announced today. However, in order to collect the money, a return for 2002 must be filed with an IRS office no later than April 17, 2006.
The IRS estimates that half of those who could claim refunds would receive more than $570. In some cases, individuals had taxes withheld from their wages, or made payments against their taxes out of self-employed earnings, but had too little income to require filing a tax return. Some taxpayers may also be eligible for the refundable Earned Income Tax Credit.
“We want people to get the refunds they're entitled to,” said IRS Commissioner Mark W. Everson. “We urge taxpayers to double-check their records before the April 17th deadline. Taxpayers can’t get a refund if they don’t file a tax return.”
In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within three years, the money becomes property of the U.S. Treasury. For 2002 returns, the window closes on April 17, 2006. The law requires that the return be properly addressed, postmarked and mailed by that date. There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
The IRS reminds taxpayers seeking a 2002 refund that their checks will be held if they have not filed tax returns for 2003 or 2004. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to satisfy unpaid child support or past due federal debts such as student loans.
By failing to file a return, individuals stand to lose more than refunds of taxes withheld or paid during 2002. Many low-income workers may not have claimed the Earned Income Tax Credit (EITC). Although eligible taxpayers may get a refund when their EITC is more than what they owe in tax, those who file returns more than three years late would be able only to apply it toward the taxes they owe (if any). They would not be able to receive a refund if the credit exceeded their tax.
Generally, individuals qualified for the EITC if in 2002 they earned less than $33,178 and had more than one qualifying child living with them, earned less than $29,201 with one qualifying child, or earned less than $11,060 and had no qualifying child.
Current and prior year tax forms and instructions are available on the Forms and Publications page of this Web site or by calling 1-800-TAX-FORM (1-800-829-3676). Taxpayers who need help also can call the IRS help line at 1-800-829-1040.
A state-by-state breakdown of estimates for individuals who failed to file a 2002 return with a refund due is attached.
Individuals Who Failed to File a 2002 Return with Estimated Refunds*
 

Location


Individuals


  Median Refund


  Total Refunds ($000)


 

			Alabama

27,200


$552


$24,546


 
			Alaska

8,700


$601


$10,663


 
			Arizona

39,000


$472


$36,396


 
			Arkansas

14,900


$536


$13,934


 
			California

197,300


$514


$218,757


 
			Colorado

30,000


$527


$34,047


 
			Connecticut

19,500


$652


$28,971


 
			Delaware

6,100


$573


$6,310


Dist. of Columbia


7,100


$567


$8,277


 
			Florida

115,900


$593


$162,926


 
			Georgia

59,300


$532


$60,783


 
			Hawaii

10,700


$611


$13,019


 
			Idaho

6,200


$468


$5,572


 
			Illinois

68,300


$632


$94,477


 
			Indiana

33,500


$612


$36,247


 
			Iowa

15,500


$570


$13,727


 
			Kansas

17,300


$543


$16,088


 
			Kentucky

18,600


$593


$18,633


 
			Louisiana

27,600


$551


$30,272


 
			Maine

6,100


$513


$6,029


 
			Maryland

38,800


$572


$47,355


 
			Massachusetts

38,900


$633


$64,676


 
			Michigan

67,500


$612


$77,660


 
			Minnesota

24,600


$525


$25,596


 
			Mississippi

14,200


$487


$12,349


 
			Missouri

34,000


$543


$32,925


 
			Montana

4,300


$493


$4,880


 
			Nebraska

8,000


$535


$7,841


 
			Nevada

20,300


$538


$23,811


 
			New Hampshire

6,800


$668


$11,177


 
			New Jersey

55,800


$646


$81,136


 
			New Mexico

11,600


$512


$11,150


 
			New York

107,800


$622


$157,855


 
			North Carolina

48,600


$499


$46,737


 
			North Dakota

2,400


$530


$2,288


 
			Ohio

56,000


$559


$56,810


 
			Oklahoma

22,500


$528


$21,370


 
			Oregon

25,800


$478


$24,240


 
			Pennsylvania

58,300


$620


$67,372


 
			Rhode Island

6,100


$584


$6,471


 
			South Carolina

20,100


$491


$19,969


 
			South Dakota

2,900


$548


$3,229


 
			Tennessee

27,300


$564


$30,889


 
			Texas

135,600


$601


$161,409


 
			Utah

9,900


$472


$10,029


 
			Vermont

2,900


$581


$3,287


 
			Virginia

51,500


$575


$60,867


 
			Washington

45,000


$611


$55,309


 
			West Virginia

5,600


$604


$6,703


 
			Wisconsin

20,200


$525


$19,412


 
			Wyoming

2,900


$603


$3,201


Armed Forces


8,500


$749


$6,995


 
			U.S. Possessions

1,000


$587


$1,426



			Total


1,714,500


$570


$2,006,097

* Excluding Earned Income Tax Credit
Related Item: Previous year forms and instructions