More than $2.5 billion is sitting in the federal treasury, waiting to be claimed by almost 2 million taxpayers -- many of them students.
The Internal Revenue Service (IRS) announced Monday that taxpayers who did not file for a 2000 tax return have until April 15 of this year to do so or risk losing money that is owed to them.
University Park students should be especially aware of this announcement, since retirees, part-time workers and students make up a large percent of those with outstanding refunds, said Bill Cressman, IRS spokesman in Pennsylvania.
In Centre County, there are about 700 residents who are owed more than $9 million dollars. In Pennsylvania, 63,700 citizens are eligible for more than $82 million. According the IRS Web site, the average amount to each individual is $560. Nationally, more than 1.9 million returns have not been filed, with taxpayers owed more than $2.5 billion dollars, Cressman said. And these amounts are only for the 2000 tax year.
A common reason students don't realize they are eligible for a refund is because their parents claim them as a dependent, Cressman said.
Kim Gaber (senior-communication arts and sciences) said she has been preparing her taxes with her father since she was 15.
"I think it's a pain doing it, but it's worth the work to get the refund," Gaber said.
Cressman said if students make more than $750 annually, they are required to file taxes and will most likely receive a tax refund. The only way to receive a refund is to file a return, he added.
Tammy Chronister, general manager at Jackson Hewitt, 1786 N. Atherton St., said a vast majority of taxpayers handle their refunds at the time it is due, but students usually don't have much of an income, so they don't owe a lot of initial taxes.
April 15 is a day many Americans recognize on the calendar as a tax deadline, but many may not realize that the deadline for receiving a refund extends three years. Cressman said the government puts a statute of limitations on the amount of time that may pass between filing for taxes and then filing for a return. Since that amount is three years, taxpayers are running out of time in which they can receive the refund.
However, after April 15, any unclaimed money will remain in the general treasury forever.
"Everything that you expect your taxes to go toward, this [surplus of] money will go toward that. One of the major uses is paying off the national debt," Cressman said.
Cressman added this amount is only for the 2000 year, and there are close to equal amounts waiting to be claimed for 2001 and 2002.
Cressman said he recommends students talk to their parents first to find out about their tax status. Then, if they believe they have a refund due, they should look at pay stubs and financial records. Finally, if they are still unsure, they can contact the IRS directly at (800) 829-1040.
"It's risky to wait until this late to find out if you have a refund due because you may find out you owe money instead that you didn't know about, and then you will be penalized a substantial amount in interest," Cressman said.
