Nearly two million taxpayers have more than $ 2 billion in unclaimed income tax refunds that they will lose unless they agree within three years of the fiscal year to which the refund refers. If you think you could not be one of them, think again. So now we’ll answer the question, “The IRS owes me money what do I do?”
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How unclaimed tax refunds were claimed
Each year, millions of US taxpayers did not claim their income tax refunds, often because they did not even realize they were coming. The problem often arises because you only need to submit a statement if you have earned more than a certain amount. People often make a mistake when they think they don’t have to block them because they are not legally required to file a tax return. But most of the time, the same people would receive a refund if they submitted it, even though they don’t have to.
According to a recent article on the Internal Revenue Service (IRS) website, unclaimed and unclaimed tax refunds are millions of dollars that cannot be delivered. So who are these people who leave their tax refunds on the table?
What happens if you have taxes?
If you have taxes and cannot pay them on time: you may have IRS fines and interest. Even if you cannot pay before tax day, you must submit your return or at least a six-month extension. Then, review your options on how you can pay the payments you pay.
What to do if the IRS is owe to you
If you understand your options, you can determine what to do if the IRS owes you. That way you can make a plan. These are some of the most popular options for people who have and cannot pay.
1. Establish an installment payment agreement with the IRS.
Taxpayers can establish IRS payment plans, known as installment agreements. The type of agreement you can get depends on your case, including what you owe and how soon you can pay the balance. You should not establish an installment payment agreement if you can pay the balance within 120 days.
2. Request a short-term extension to pay the full balance.
The IRS will provide taxpayers up to 120 days to pay their full tax balance.
3. Request difficulties to pay taxes.
The IRS offers options for people in difficult cases, including the state that cannot currently be charged and the offer in compromise. For an extension based on difficulties, you only qualify if you can show that the tax due to you would create financial difficulties, according to the IRS financial standards.
4. Get a personal loan.
You can request a personal touch, perhaps a friend or relative, to lend you the money. Rates and costs will vary by source. This may be a cheap option, but you should use your best judgment.
5. Borrow your 401 (k).
If your 401 (k) plan allows for this type of loan, it is generally limited to 50 percent, with a maximum of $ 50,000, and you must pay the money within five years.
How to claim your refund of unclaimed taxes
If you think you may be in one of the previous groups, you may want to get money. First, check your records to make sure you have filed a tax return for each of the last three years in which you had earnings.
Review your statements for the past three years to make sure they are accurate and to see if you were eligible for the income credit but did not claim it. While the law allows three years from the filing deadline (April 15) to file your tax return to claim a refund, if you don’t do it within the time limit, the money is lost forever.
Before you go, I hope this article about the IRS owes me money what do I do is helpful for you. If you need more help you can search online or speak to an attorney near you.
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