Every year, taxpayers lose refunds they’re entitled to because they haven’t filed tax returns.
Currently, the IRS owes over $2 billion to 1.7 million people for the tax year of 2002. But they can’t get the refunds unless they file the returns, and the deadline to file is April 17, 2006. Taxpayers have up to 3 years to claim refunds, but after that, they forfeit any refunds.
Note 1: There are no penalties for late filing of individual tax returns if the IRS owes the taxpayer a refund.
Note 2: Refunds for 2002 won’t be sent to a taxpayer until he or she has also filed tax returns for 2003 and 2004.