IRS has $1.2 billion in unclaimed tax refunds

By MarketWatch

About $1.2 billion is sitting in Internal Revenue Service coffers, waiting to be claimed by the 1.3 million taxpayers who neglected to file a 2004 tax return.

About half of the taxpayers who didn't file a 2004 return would get a refund of at least $552, the IRS estimated this month.

In California, about 149,500 people are owed a median refund of $507 (half can expect more, and half less), while in Texas, 96,600 taxpayers are owed a median of $582, according to IRS estimates.

In Florida, 93,900 taxpayers are owed a median of $575, and in New York, 76,600 taxpayers are owed a median of $612.

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If you didn't file a 2004 return, consider doing so soon: The deadline for claiming a refund for that tax year is April 15 this year, and you must file a return to get a refund.

After that deadline, any unpaid refunds for 2004 are handed over to the U.S. Treasury.

There is no penalty for filing a late return if you have a refund coming to you, the IRS said.

You'd think that taxpayers who face big tax bills are the ones who don't file returns, but that's not always the case. For instance, workers whose incomes fall below the filing threshold may decide to not file, said Michelle Lamishaw, an IRS spokeswoman.

"Maybe (the refund) didn't seem like a lot of money to them, or it seemed like too much bother to file, or they didn't have the right paperwork. Sometimes they may anticipate they wouldn't get a refund, so why bother, but sometimes they're wrong about that," Lamishaw said.

"There are a lot of reasons why people don't file, but it can add up to serious money for some people," she said.

Lamishaw noted that, in particular, filing a 2007 return is important because anyone who wants a stimulus rebate payment must file a tax return.

Note that, if you're eligible for a refund for 2004, the IRS won't send it until you file your 2005 and 2006 returns as well. And, if you have any outstanding taxes owed or other federal debt, such as student loans, the IRS will apply the refund to that debt before sending any money to you.

Tax forms for prior years are available on the IRS Web site at IRS.gov, on the forms and publications page. Or, taxpayers can call 800-TAX-FORM (800-829-3676).

Individuals who failed to file a 2004 return with an estimated refund

State	Individuals	Median estimated refund*	Total estimated refunds *
Alabama	20,700	$548	$16,210 ,000
Alaska	6,000	$643	$6,514,000
Arizona	33,100	$465	$26,175,000
Arkansas	11,100	$514	$8,706,000
California	149,500	$507	$134,399,000
Colorado	22,900	$504	$20,048,000
Connecticut	15,000	$617	$16,484,000
Delaware	4,900	$561	$4,175,000
District of Columbia	5,200	$528	$4,655,000
Florida	93,900	$575	$100,600,000
Georgia	43,900	$519	$37,821,000
Hawaii	8,900	$581	$9,353,000
Idaho	5,000	$464	$3,776,000
Illinois	50,000	$608	$53,131,000
Indiana	26,100	$588	$22,888,000
Iowa	11,500	$566	$9,002,000
Kansas	12,700	$536	$9,903,000
Kentucky	14,100	$566	$11,734,000
Louisiana	21,600	$562	$20,902,000
Maine	4,700	$533	$4,008,000
Maryland	29,700	$548	$27,275,000
Massachusetts	29,500	$605	$32,934,000
Michigan	47,000	$582	$42,580,000
Minnesota	19,200	$498	$15,930,000
Mississippi	11,200	$499	$8,357,000
Missouri	24,900	$527	$19,627,000
Montana	3,600	$490	$2,665,000
Nebraska	5,900	$527	$4,752,000
Nevada	17,500	$520	$16,776,000
New Hampshire	5,300	$633	$5,011,000
New Jersey	40,500	$621	$41,979,000
New Mexico	8,700	$502	$7,041,000
New York	76,600	$612	$81,951,000
North Carolina	36,000	$491	$29,724,000
North Dakota	1,900	$531	$1,537,000
Ohio	43,600	$544	$35,744,000
Oklahoma	15,900	$515	$12,611,000
Oregon	20,400	$449	$14,596,000
Pennsylvania	45,700	$598	$41,455,000
Rhode Island	4,500	$579	$4,411,000
South Carolina	15,200	$485	$11,384,000
South Dakota	2,400	$542	$2,023,000
Tennessee	21,100	$559	$19,191,000
Texas	96,600	$582	$93,090,000
Utah	7,400	$470	$5,811,000
Vermont	2,300	$538	$1,779,000
Virginia	38,400	$543	$37,247,000
Washington	34,400	$587	$34,337,000
West Virginia	4,500	$591	$4,033,000
Wisconsin	15,900	$522	$13,026,000
Wyoming	2,500	$616	$2,344,000
Armed forces	5,500	$770	$4,332,000
U.S. possessions and territories	100	$591	$103,000
Total	1,294,700	$552	$1,196,140,000

* Excluding the earned income credit and other tax credits.

This article was reported and written by Andrea Coombes for MarketWatch.