Is the IRS Holding Your Money?

Most of us are working on our 2011 tax return. I spent the day collecting and organizing documents and numbers for my CPA. Once again, my cat wanted to help out. “Butters” loves calculators and papers. Anything that makes noise.

 

I thought I was a little behind in getting my taxes out this year, but not after hearing the IRS is waiting for about a million people who still haven’t filed a federal income tax return for 2008. Those million procrastinators represent one billion dollars in unclaimed tax refunds. $1,000,000,000!  The IRS estimates half of these refunds are worth more than $600.

And the window is closing to collect. To get a refund for tax year 2008, the deadline is April 17. The date is two days later this year because April 15 is a Sunday and April 16 is a District of Columbia holiday. After April 17, any unclaimed refunds from 2008 becomes the property of the U.S. Treasury.

Even “Butters” would scratch and claw to keep that from happening.

 

One Comment on “Is the IRS Holding Your Money?

  1. In 2009, I supplemented my teacher income by tutoring for a small company (that is now out of business) and earned less than $600. I was not given a W2 and was told by the tutoring company that the reason for this was because I made so little. There was a special tax form I was to fill out, a 1099… & I did. I was notified last year (2 years after the fact) that I owed the federal government nearly $500 in taxes because of that tutoring. I paid it even though I felt rather queasy about it (that meant I took all those hours away from my own family for less than $100 profit).

    Yesterday I got a statement in the mail from the state of SC, saying I owe nearly $500 to them too. I made around $34000 in 2009 from my regular teaching job. Did that extra little bit of money I earned tutoring push me into a different tax bracket? Why would I have to pay the federal government & the state government almost the same amount each? And why would the amount of tax I owe for that year exceed the additional income I earned from tutoring? I paid the federal government and will pay the state too if I truly owe this, but I feel like I’m essentially paying the government for the time I spent tutoring other people’s kids when I could have been at home helping my own 3 children.

    My husband wanted to use a small town tax preparation business that year, which I really regret (I feel much safer with H&R Block), but that being said, what can I do to make sure this is a legitimate charge and how I can keep from finding myself in this position again?

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