Millions of Dollars in Unclaimed Tax Returns

As of December 1, 2010, The IRS has $164.6 million dollars of funds waiting to be returned to it's rightful owners. And all of these funds cannot be delivered for one reason alone: mailing address errors. The $164 million dollars belongs to over 110,000 individuals and some individuals even have multiple checks waiting for them.

We want to make sure taxpayers get the money owed to them, said IRS Commissioner Doug Shulman. If you think you are missing a refund, the sooner you update your address information, the quicker you can get your money.

It is very important the IRS receives your correct mailing address on the forms you turn in.  "The amount of money lost in limbo is staggering." says one EA (Enrolled Agent).  "You or your tax representative simply must pay attention to detail or you may not get what you are owed."

The average check owed to individuals is up from around $1100 in 2008 to over $1400 in 2009.  This is probably due to changes in tax law which introduced new credits or expanded on existing tax credits.  The IRS Recommends E-file and Direct Deposit to help eliminate mailing errors. Also, anyone can update their mailing information using the link on the IRS website titled "Where's My Refund".  Fill it out and  the tool will provide instructions on how to resolve a delivery problem.  Taxpayers checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of Where's My Refund? by calling 1-800-829-1954.

Even though it is a very small percent of the population that has trouble receiving their refund, it is still way too big of a number and a large amount of money.  With electronic options to file and receive money becoming increasingly available and popular with the people of the United States, the number of mail related problems is expected to continue to drop.  E-file also reduces the number of errors on tax returns and speeds up return time. Please remember, the IRS does not contact individuals by email so if you get any email claiming that it is the IRS or any other government agency and they wish to discuss your return, please disregard it as it is most likely a theft scam.


The best way for an individual to verify if she or he has a pending refund is going directly to IRS.gov and using the Where's My Refund? tool.