Does the IRS Owe You Money, South San Francisco? More Than $1 Billion in Limbo

By Renee Schiavone:

The IRS this week is urging taxpayers who didn’t file federal income tax returns in 2011 to do so by April 15– or up to $1 billion that’s estimated to be owed to a million taxpayers will not be paid out.

“Time is running out for people who didn’t file a 2011 federal income tax return to claim their refund,” said IRS Commissioner John Koskinen. “People could be missing out on a substantial refund, especially students or part-time workers. Some people may not have filed because they didn’t make much money, but they may still be entitled to a refund.”

The agency estimates some one million taxpayers did not file as they should have in 2011. Half of the potential refunds owed for 2011 are believed to be worth nearly $700 each.

The states in which taxpayers are owed the most are Texas and California, with total potential refunds estimated at $103,164,000 and $92,209,000 respectively, according to the IRS. A snapshot of how much is estimated to be owed in each state is attached to this article above, or you can view a full chart here.

“In cases where a tax return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund,” the agency said.

So that means if you don’t claim your refund by April 15 of this year, the money becomes property of the U.S. Treasury, according to the IRS.

If you’re worried about getting slapped with a fine for filing late, the IRS says there is not a penalty for late returns that qualify for a refund.

Click here to learn more about why the IRS says you should file.

(Image via Shutterstock)