Schumer: 77,000 New Yorkers Eligible for Nearly $50 Million in Unclaimed Tax Refunds - Money Just Sitting at The IRS Waiting to be Collected

Press Release

SCHUMER: 77,000 NEW YORKERS ELIGIBLE FOR NEARLY $50 MILLION IN UNCLAIMED TAX REFUNDS - MONEY JUST SITTING AT THE IRS WAITING TO BE COLLECTED

Thousands of New Yorkers Qualify for An Average Refund of $639, but Never Filed a Return to Claim it -- $1.3 Billion in Total Nationwide

To Collect Refund, 2005 Return Must Be Filed With The IRS No Later Than April 15

Schumer: In These Difficult Economic Times, New Yorkers Cannot Let A Single Dollar Slip Through the Cracks

Today, United States Senator Charles E. Schumer announced that the IRS has $1.3 billion worth of unclaimed 2005 tax refunds that are ready to be collected by over a million people nationwide. There are 76,800 New Yorkers who are eligible for a 2005 refund. The IRS is estimating that the median refund is $639. In order to collect the money, a 2005 tax return must be filed by Tuesday, April 15, 2009. This represents nearly $50 million that could be spent or saved in New York State.

"While so many Americans are struggling to make ends meet, New Yorkers cannot let a single dollar slip through the cracks," Schumer said. "With this money just sitting at the IRS waiting to be claimed, New Yorkers should contact the IRS immediately ensure they don't lose out on hundreds or even thousands of dollars.."

The IRS has estimated that half of those who are eligible for refunds for 2005 would receive more than $581 and an average of $639. It is believed that some tax payers may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. The law states that most taxpayers have a three-year window for claiming a refund. If no return is filed to claim the refund within three years, the money becomes property of the United States Treasury. For 2005 returns, they must be postmarked by April 15, 2009. There is no penalty for filing a late return qualifying for a refund. The IRS also announced that taxpayers seeking a 2005 refund will have their checks held if they have not filed tax returns for 2006 or 2007. Also, the refund will be applied to any money owed to the IRS and could be used to pay unpaid child support or other past due federal debts such as student loans.

If taxpayers do not file 2005 return, individuals could lose more than refunds of taxes withheld or paid during 2005. Many low-income workers may not have claimed the Earned Income Tax Credit. Normally, unmarried individuals qualified for the EITC if in 2005 they earned less than $35,263 and had more than one qualifying child living with them, earned less than $31,030 with one qualifying child, or earned less than $11,750 and had no qualifying child. Limits are slightly higher for married individuals filing jointly.

Current and prior year tax forms and instructions are available on the Forms and Publications web page of IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676). Information about the Earned Income Tax Credit and how to claim it is also available on IRS.gov. Taxpayers who need help also can call the toll-free IRS help line at 1-800-829-1040.

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