IRSBuzz

If you have yet to file your tax return for 2006, the Internal Revenue Service has good reason for you to do so, in fact, they have 1.3 billion reasons! You need to act fast though, in order to claim your unpaid refund.

According to the IRS, in an announcement dated March 2nd 2010, almost 1.4 million people could be due a refund on their 2006 tax return if they file it by April 15th, 2010. A total of $1.3 billion waits for American taxpayers who have not yet filed their 2006 tax return.

Here are some facts that you need to know about filing delinquent tax returns:

1. Delinquent tax returns cannot be electronically filed, so the 2006 tax return must be postmarked by April 15th to count as filed by the deadline.
2. The IRS will only issue refunds for the past three years – if you file your 2006 return after the deadline and are due a refund, that refund automatically becomes the property of the United States Treasury.

Some people do not file a tax return because their income does not require them too, however, by not filing they are missing out on possible refunds. If you qualify for any refundable credits (such as the Earned Income Tax Credit or, exclusively for 2006, the telephone tax refund credit) or had any withholding throughout the year, it may be in your best interest to file a return.

Keep in mind that your refund will be held by the IRS if you have not filed a tax return for 2007 or 2008. The IRS can also hold your refund if you have other outstanding debt obligations.

If you do file your 2006 return, make sure that you have selected the right form and filing status for your situation in 2006… (for example if you were married then but not now). You should also review your return to ensure there are no mistakes – doing so will prevent any unnecessary delays while the IRS processes your return.