Refunds totaling more than $1.1 billion may be waiting for nearly 1.1 million people who did not file a federal income tax return for 2007, according to the Internal Revenue Service.

To collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011. The IRS estimates that half of these potential 2007 refunds are for $640 or more.

Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments, the IRS noted. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.

For 2007 returns, the window closes on April 18, 2011. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund. The IRS reminded taxpayers seeking a 2007 refund that their checks will be held if they have not filed tax returns for 2008 and 2009. In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans.

By failing to file a return, people stand to lose more than a refund of taxes withheld or paid during 2007. In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit, the IRS noted. The EITC helps individuals and families whose incomes are below certain thresholds, which in 2007 were $39,783 for those with two or more children, $35,241 for people with one child, and $14,590 for those with no children. For more information, visit the EITC Home Page.

The IRS provided a table showing the number of individuals and potential refunds, state by state:

Individuals Who Did Not File a 2007 Return with a Potential Refund

State	Individuals	Median Potential Refund*	Total Potential Refunds ($000)*
Alabama	17,600	$634	$15,649
Alaska	5,200	$688	$6,545
Arizona	31,000	$543	$29,217
Arkansas	9,100	$606	$8,111
California	124,000	$597	$129,205
Colorado	20,900	$588	$21,591
Connecticut	11,900	$714	$14,769
Delaware	4,000	$658	$4,121
District of Columbia	4,400	$629	$4,751
Florida	74,500	$665	$87,293
Georgia	36,800	$590	$35,475
Hawaii	7,600	$717	$8,960
Idaho	4,600	$540	$4,340
Illinois	38,800	$692	$44,168
Indiana	20,200	$679	$19,864
Iowa	9,500	$668	$8,411
Kansas	10,400	$621	$9,601
Kentucky	11,200	$660	$10,449
Louisiana	19,500	$663	$20,327
Maine	3,600	$606	$3,398
Maryland	25,100	$645	$27,727
Massachusetts	23,000	$701	$26,881
Michigan	30,800	$663	$31,943
Minnesota	14,000	$604	$13,786
Mississippi	9,400	$585	$8,440
Missouri	20,300	$604	$18,588
Montana	3,400	$607	$3,185
Nebraska	4,700	$620	$4,509
Nevada	15,000	$630	$15,575
New Hampshire	3,900	$741	$4,960
New Jersey	31,000	$705	$36,504
New Mexico	7,900	$594	$7,510
New York	1 | 2 | next 0 Comments Be the first to comment on this post using the section below. Add Your Comments... Already Registered? If you have already registered to Accounting Today, please use the form below to login. When completed you will immeditely be directed to post a comment. Username: Password: Forgot My Password Not Registered? You must be registered to post a comment.   Search Accounting Today Advanced Search Advertisement J.H. Cohn and Reznick Group to Merge Facebook Co-founder Escapes Taxes but Faces Ban on Hugging 5 Ways Your Firm Can Combat Tax Season Nightmares Top 10 Payroll Mistakes Companies Make Most Outrageous Tax Deductions IRS Makes Offer in Compromise Program More Flexible House Approves Mobile Workforce Tax Relief Bill Senators Intro Plan to Stop Facebook Co-founder from Avoiding Taxes Auditing and Accounting Standards in Transition IRS Provides Automated Tax Data Input for FAFSA Form Advertisement What's New at Grant Thornton May 14, 2012 CEO Stephen Chipman talks about his firm's new brand focus on growth, and its recent M&A activity. Advertisement SLIDE SHOW Top 10 Payroll Mistakes Companies Make May 14, 2012 Keeping your clients from running afoul of IRS rules around payroll taxes will help them avoid stiff penalties. 10 Years of the Top 100 Firms May 6, 2012 Tracking trends at the biggest firms in the U.S. Best Accounting Firm Taglines April 27, 2012 Our favorite slogans from around the profession. Favorite Busy Season Activities April 10, 2012 LinkedIn Accounting members share the best methods to bust stress and boost morale. The Best Places to Be an Accountant 2012 March 27, 2012 From our 2012 Regional Leaders list, we rank the best parts of the country to operate an accounting firm. More Wacky Tax Deductions March 26, 2012 LinkedIn members point out some weird tax deductions their clients have suggested. 7 Tax-Free Benefits for Employees April 15, 2012 Employee rewards Uncle Sam can't touch. Advertisement Advertisement Advertisement Financial Recovery Center Accounting News Government News Business News Economic Developments Financial Planning Retirement Planning Education Planning Estate Planning Succession Planning Wealth Management Financial Advisory Practice Aids Technology Products Vendors Resellers Software Reviews Small Business Services Client Advisory Services Payroll Small Business Trends Government Resources People on the Move People on the Move Industry Leaders Q&A Industry Leaders Q&A Audit/SOX Regulation Auditing Sarbanes-Oxley Tax IRS Watch Legal Watch Tax Essentials Tax Season Essentials Tax Research Tax Planning Practice Management Managing a Practice Staffing and Recruiting Regulations Marketing and Growing Your Practice Mergers and Acquisitions Legal Matters Association News Taxes of the Rich & Dumb Celebrity Tax Foibles Odd News Accounting of the Stars Inside Views Inside Views HOME About Us Contact Us Advertise with Us Subscribe Reprints Customer Service Feedback My Account Site Map Privacy Policy Subscription Agreement sourcemedia corporate site banking American Banker Bank Technology News U.S. Banker National Mortgage News Mortgage Technology Mortgage Servicing News Origination News Credit Union Journal PaymentsSource Collections & Credit Risk ISO & Agent capital markets The Bond Buyer Asset Securitization Report Mergers & Acquisitions Leveraged Finance News Private Placement Letter technology Information Management Health Data Management Insurance Networking News Traders Magazine Securities Technology Monitor accounting & benefits Accounting Today Employee Benefit News Employee Benefit Adviser investment advisory Financial Planning On Wall Street Bank Investment Consultant Money Management Executive Investment Mgt. Mandate Pipeline © 2012 AccountingToday and SourceMedia, Inc. All Rights Reserved. SourceMedia is an Investcorp company. Use, duplication, or sale of this service, or data contained herein, except as described in the Subscription Agreement, is strictly prohibited.