If you haven’t already heard, October 17th is the Internal Revenue Service’s (IRS) stated last day to claim a share of the $1.5 billion in unclaimed federal income taxes. This is an incredible opportunity for any American who has not yet filed their federal taxes to take advantage of such an offer. But before you rush ahead and claim the money, it’s important to understand the details of the IRS Notice and what the deadline actually means.
The IRS Notice provides information about what will happen if individuals do not file their taxes on or before October 17th. It also outlines the state and federal taxes that are eligible for the $1.5 billion in unclaimed funds, and details how individuals can file their returns correctly and efficiently. To help you make the most of this opportunity, we’ve outlined the key points of the IRS Notice and provided a breakdown of who is eligible and the best tips on filing your tax return before the deadline.
Untapped Funds
According to the IRS Notice, the $1.5 billion in unclaimed funds is the result of individuals who did not file their federal taxes between the years of 2008 and 2017. While this seems like a significant financial windfall, it’s important to keep in mind that the value of the money varies significantly depending on the tax filing status of the individual. Individuals who were single and earned less than $12,000 in the year 2017, for example, will only be able to claim up to $1,000. In contrast, wealthier individuals, those who earned over $130,000, can claim up to $25,000.
The IRS Notice explains that the value of the unclaimed funds is not the only factor determining how much money an individual can receive. It also explains that individuals who owe the government money may not receive the full value of the money depending on the outstanding tax balance. This means that taxpayers must first pay their taxes before they are able to take advantage of the unclaimed funds.
Eligibility Requirements
The IRS Notice also states that individuals who have not filed their federal taxes for the years 2008 through 2017 are eligible for the unclaimed funds. Additionally, the Notice states that individuals who have never had to file taxes before, such as those who have lived in the US for less than five years or have recently started a business, are also eligible. Those who have earned money from overseas sources such as international investments, foreign inheritances and other sources of income are also eligible for the unclaimed funds.
Additionally, the IRS Notice states that individuals who have back taxes due for the years 2008 and prior are not eligible for the unclaimed funds offered. This means that individuals with back taxes must first pay their taxes before they can claim the unclaimed funds.
Instructions and Tips
The IRS Notice also outlines several steps that individuals need to take in order to claim their unclaimed funds. The first step is to make sure that all of their filed tax returns are up to date. This means that individuals should double-check their records to make sure that all of their taxes were filed correctly and in a timely manner. If there are any discrepancies or mistakes, the Notice explains that individuals should contact the IRS or a qualified tax professional to fix any errors.
Once the tax returns have been verified, the Notice explains that individuals must then submit their tax return by October 17th. It states that individuals can submit their tax return using a paper-filing system or by using an electronic filing system. Those who opt for e-filing may be eligible for faster processing of their tax return, which may help them to receive their unclaimed funds more quickly.
The Notice also outlines tips for individuals who are filing their taxes for the first time. The Notice states that those who are filing for the first time should carefully review the instructions of the tax-filing system they are using and make sure that they are completing the forms correctly. Additionally, the Notice states that individuals should double-check their returns to make sure that no errors have been made and that all of the information submitted is accurate.
Additionally, the Notice emphasizes the importance of keeping all of your records of the filing process, including a copy of the submitted tax return and any other documents associated with the filing process. This will ensure that if there are any discrepancies between what was filed and what the IRS reports, individuals can quickly make the necessary adjustments to resolve the issue.
Final Thoughts
The IRS Notice offers a unique opportunity for individuals who have not yet filed their taxes to take advantage of the unclaimed funds. It is important to understand the details of the Notice to make sure that individuals can properly apply for their share of the funds before the October 17th deadline. It is also important to double-check all of the tax returns to make sure that no mistakes have been made. Being aware of these details and filing accurately can help individuals get their full share of the $1.5 billion in unclaimed funds before the deadline.
