IRS: $29 million waiting for Arizonans

PHOENIX - According to the Internal Revenue Service, more than $1 billion in income tax refunds is waiting to be claimed from people all over the United States.

This money is from unfiled taxes for 2007.

More than $29 million of those dollars belongs to Arizona residents.

The IRS estimated that half of the refunds are worth at least $640.

The agency said some of the 31,000 Arizonans who didn’t file 2007 taxes most likely didn’t do so because they made too little income to require filing a tax return. They did however still have taxes withheld from their paychecks.

The law provides most people with a three-year window to claim a refund.

If a claim isn’t filed in that time…the money becomes the property of the U.S. Treasury.

For those who don’t file a 2007 return, they could lose more than a refund. Many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC) , which helps individuals and families whose incomes are below certain thresholds.

The requirements in 2007 were $39,783 for those with two or more children, $35,241 for people with one child, and $14,590 for those with no children.

Tax returns for 2007 must be properly addressed, mailed and postmarked by April 18, 2011. There is no penalty for filing a late return qualifying for a refund.

The IRS reminds taxpayers seeking a 2007 refund that their checks will be held if they have not filed tax returns for 2008 and 2009. In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans.

In addition to their website, information on current and prior year tax forms are also available by calling 1-800-TAX-FORM (1-800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for 2007, 2008 or 2009 should request copies from their employer, bank or other payer.

If you can’t get the necessary forms, you can get a free transcript showing information from these year-end documents by ordering on-line at IRS.gov, or by calling 1-800-908-9946, or by filing Form 4506-T Request for Transcript of Tax Return, with the IRS.