IRS holds undeliverable refunds for thousands of taxpayers

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IRS holds undeliverable refunds for thousands of taxpayers

By Gene Hartley

ST. LOUIS, Mo. -- The Internal Revenue Service is looking for 1,768 Missouri taxpayers who are due refund checks worth $883,596.  The refund checks, averaging $500, were returned as undeliverable and can be claimed as soon as their owners update their addresses with the IRS.

Nationally, more than $110 million are waiting for 115,478 taxpayers.  Most refunds are from returns filed for the 2006 tax year but some taxpayers are due refunds for more than one tax year.  So far in 2007, the IRS has processed nearly 105 million refunds, totaling about $240 billion, either by mail or direct deposit.  Undeliverable refunds account for less than one-tenth of 1 percent of all refunds, or about one in a thousand.

To see a list of Missouri taxpayers to whom the IRS seeks to send money, click here.

“Most often, refund checks are returned to the IRS because a life change – such as a marriage or divorce – causes an address change,” said Michael Devine, IRS spokesman for Missouri. 

If a taxpayer moves or changes his or her address and fails to notify the IRS or the U.S. Postal Service, a refund check sent to their last known address is returned to the IRS.

Taxpayers can find out if they have an undelivered tax refund by visiting the IRS Web site at www.irs.gov and clicking on “Where’s My Refund.”  To use this feature, taxpayers enter information from their 2007 tax return.  When this information is submitted online, taxpayers will see the status of their refund check and, in many cases, they also get instructions to resolve potential account problems. 

Taxpayers who have moved since filing their last tax return can ensure the IRS has their correct address by filing Form 8822, Change of Address, with the IRS. Download the form from the IRS Web site at www.irs.gov or request it by calling 1-800-829-3676.

 Taxpayers without access to the Internet who think they may be missing a refund check should first check their records or contact their tax preparer, then call the IRS toll-free assistance line at 1-800-829-1040 to update their address.

  Devine said taxpayers can avoid undelivered tax refunds by choosing to have their refunds deposited directly into a personal checking or savings account.  Direct deposit guards against undelivered, lost or stolen refund checks.  The option is available for both paper returns and electronically filed returns.

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