April 15 is final deadline
to collect refunds for 2000The IRS estimates that Hawaii taxpayers
are due $15.3 million in unclaimed refunds
WASHINGTON >> Nearly 2 million students, retirees and other taxpayers stand to lose $2.5 billion in refunds if they do not act quickly to claim the money.
The Internal Revenue Service said yesterday that anyone who should have gotten a refund for taxes paid in 2000 but did not file a return must file and claim the money by April 15.
"Don't wait until it's too late," said IRS Commissioner Mark Everson. "We want all taxpayers to get the refund they're due."
Half of those taxpayers could claim refunds of $529 or more, the IRS estimated. That calculation does not include the earned income tax, which could make the refund even larger for some low-wage workers.
The IRS estimates 11,400 Hawaii taxpayers who failed to file a 2000 federal return are due a median refund of $561, for a total of $15.3 million.
"That's not chump change," said Fred Grant, a senior tax analyst at Intuit Inc., who urged taxpayers to file the returns before the law stipulates that the money goes to the U.S. Treasury. "I'm sure they'll gladly take it," he said.
Individuals owed a refund have three years to claim it. This year's tax filing deadline is the last chance to claim 2000 refunds.
Students, retirees and anyone who worked part time or for only part of the year are among those most likely to be owed money. Those individuals typically did not have enough income to be required to file a return, but they may have overlooked the taxes withheld from their paychecks or payments for self-employment taxes. Since they did not file a return, they never got the refund due them.
In 2000 the IRS did not require individuals with income less than $7,200 and married couples with income less than $12,950 to file a tax return. Those age 65 or older could receive a little more before they had to file a return.
Dependents, a category that includes many students, were not required to file a return if they earned $4,400 or less or received $700 or less in interest, dividends and capital gains.
A refund for taxes paid in 2000 will be held at the IRS if the taxpayer did not file a return for 2001 and 2002, in case the taxpayer owes taxes for those years. There is no penalty for filing a late return to claim a refund.
Eric Hayes, senior tax analyst at TaxBrain.com, said a refund check is not the only reason to file a tax return. The IRS compares the reported wage information with the Social Security Administration, which gives taxpayers the opportunity to correct any errors and protect their long-term benefits. Also, an immigrant who files tax returns can use the documents as proof he met his legal obligations if he later tries to become a U.S. citizen.
Individuals who have defaulted on student loans can lower the balance owed, because the IRS will apply the return to any past-due federal debt. The IRS may also divert the refund if the taxpayer owes unpaid child support.
Those who might have also been eligible for the earned income tax credit in 2000 will lose their refund after April 15. After the deadline, the credit would offset any taxes otherwise owed, but the remainder of the credit would not be paid as a refund.
In 2000, individuals qualified for the earned income tax credit if they cared for two or more children and earned less than $31,152 or cared for one child and earned less than $27,413. Individuals without children who earned less than $10,380 may also have qualified for the credit.
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How to claim a refund
Some questions and answers for people who think they might be owed a tax refund for 2000:Question: Could I be owed a refund?
Answer: If you did not file a 2000 tax return but your employer withheld taxes from your paycheck or you made self-employment tax payments, you might be eligible for a refund. Generally, individuals who earned less than $7,200 and couples who earned less than $12,950 did not have to file a return that year. The income threshold is higher for those age 65 or older, and lower for dependents.
Q: What should I do?
A: You need to file a tax return for that year. The IRS will hold the refund if you have not filed tax returns for the succeeding years. To be sure you get the refund, you should make sure you have filed tax returns for 2000, 2001 and 2002.
Q: Why should I file?
A: You lose your right to claim a refund and the earned income tax credit after three years, and refunds on taxes paid in 2000 must be claimed by April 15. Self-employed taxpayers do not receive credits toward Social Security retirement or disability benefits if they do not file.
Q: How do I file a late return?
A: You need copies of the Form W-2 you received from your employer, which reported your wages. You also need any Form 1099s you received from banks and financial institutions showing interest and investment income.
Q: I can't find my 2000 wage and income information. Can I get help?
A: Your employer, bank or financial institution may be able to provide you with copies of the 2000 information. If not, the IRS can help you get the records.
Q: Where can I get old tax forms?
A: They are available on the IRS Web site or can by ordered by calling 800-TAX-FORM (800-829-3676).
Q: Where can I get help?
A: Call the IRS help line at 800-829-1040.
Associated Press