Taxpayers usually try to pay their tax amount before the April 15th as it’s the deadline for paying taxes. If the deadline is crossed and the payment is not made in time then the federal and state government of that specific country can impose different penalties in the form of late fees. These penalties are imposed on the taxpayers which don’t have any refund due but those individuals who have due refund have no any such penalties if they fail to file the tax return due to any reason.
Undoubtedly tax season is a very stressful time not only for CPAs but also for taxpayers. As the busy schedules do not allow the individuals to file the tax returns in time. In such circumstances taxpayers who owe money are forced to bear the penalties imposed by the government. Therefore those who owe money tries to complete the tax return within the given time span to avoid punishments. As discussed above there are no penalties for those taxpayers who are expected to receive a refund to file their return late. But they may another problem which is known as unclaimed refunds.
What are unclaimed tax refunds?
These are actually the amount which is due to a specific taxpayer but due to some reason they failed to claim it. This unclaimed refund usually arises when a busy taxpayer who expects a refund puts off sending tax forms until it’s entirely forgotten about. According to an estimate it is found that thousands of individuals fail to file the tax return which leads them receiving a refund. Its (tax filing) not so complicated process rather its simple. An individual can purchase tax software with just few dollars that will make tax preparation and calculation very easy and fast. Majority of taxpayers also uses paper taxes by filing different suggested forms. These forms are easy to fill and it takes about an hour for an individual to fill it.
Time period to claim tax refund:
Usually a taxpayer has 3 years after the year when he was supposed to file the tax return to claim refund. The refund amount can be obtained by filing the state or federal tax return form that could not be filed previously. As it happens that the tax laws change every year and the individual who wants to reclaim the unclaimed amount is required to use a tax forms for that specific year that he have missed.learn additional information at http://www.wmbfnews.com/story/30039277/penny-tax-paying-dividends-in-form-of-improvements-in-richland-county
Such old federal tax forms can be downloaded from the website of IRS. A taxpayer can easily find and downloaded such forms for claiming tax refund. Not only the federal tax forms but also the old state forms can also be downloaded from the site of IRS. In this way they are encouraged to visit the website again and again to file the claims.
Only the federal and state governments are benefited from the unclaimed tax refunds. And a tax refund to the taxpayer is made because he paid too much in taxes.