Some isle
taxpayers losing
out on refunds

The IRS is holding $359,000
worth of checks that couldn't
be delivered

By Russ Lynch
Star-Bulletin

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The federal government is holding more than $359,000 that it owes 528 Hawaii taxpayers whose tax refund checks were returned in the mail because they couldn't be delivered.

The Internal Revenue Service regional office in Seattle said the checks came back for a variety of reasons. Some taxpayers moved and left insufficient forwarding information. Others put an incorrect address on their tax returns.

When that happens and the check comes back, the IRS destroys the original check but notes in the taxpayer's account that the money is owed. Once the taxpayer contacts the agency to find out what happened to the refund, and provides a correct address, a new check will be issued, the IRS said.

"Taxpayers who filed their returns at least eight weeks ago and haven't received the refund they expected or some correspondence about the refund from the IRS should call us," said Judy Monahan, IRS communications manager for the Pacific-Northwest district.

The number to call is 1-800-829-1040. A new check usually will be issued within 30 days, the IRS said, meaning taxpayers who call now could get their checks by Christmas.

The IRS said the number of checks that don't get through is small compared to those that do. The latest figures show that Hawaii taxpayers so far received more than 417,500 refunds from their 1997 returns and the average refund was $1,169. Monahan said the easiest way to avoid refund snags is to arrange for the IRS to make a direct deposit into the taxpayer's bank account.

That can be arranged by filling in two lines in the tax return, she said.