Millions in unclaimed tax refunds still available to taxpayers as every year scores of workers whose income is low decide not to file taxes. Big mistake. There is a misconception that if your income is low (currently below $8,925 for Single taxpayers; $17,850 Married filing Jointly) you don’t owe taxes. Although that’s correct there is a flaw in that reasoning. Tax payments are withdrawn from your paycheck every time you get paid so not only you don’t owe anything, the government may owe you.
This is one of the reasons there are still millions of dollars in unclaimed refunds the IRS has on its books. Recent reports indicate the IRS has substantial amount in unclaimed 2010 tax refunds. On April 16, 2014 that money will become property of the US Treasury so there are roughly a little over two months to claim it. You should know that if you didn’t owe the IRS and qualified for a refund, you could still file your 2010 taxes and claim your share.
Although a big chunk of money is still with the IRS coffers due to tax reports not filed, many of the checks were mailed but never delivered. The US workforce shows great mobility and failure to update one’s address creates situations where it’s impossible to deliver refund checks. It is your responsibility to let the IRS know of your current address and the best way to do it is by filing Form 8822, Change of Address. The IRS reports that many times a taxpayer address is wrong or incomplete and the US Postal Service returns those checks to the IRS.
In the future request a direct deposit of your refund to ensure your funds get to your account to avoid the above-mentioned problems and receive your money faster. Additionally, you can monitor the status of your refund on irs.gov at Where’s my Refund.
Form 8822 – Change of Address. This form should be used if you move and want to make sure the IRS has your most current information. People usually change their addresses at the post office that later notifies the IRS, but you can skip the “middleman” and go straight to the source. It is really recommended if you expect any correspondence or refund from the IRS and want to make sure it doesn’t get lost. Businesses facing similar scenario should use Form 8822-B. Attached to the form are instructions that include address to where to send the form; they vary based on your old state of residence.