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IRS Owes $2B to Unclaimed 2002 Returns

I mentioned that the tax shortfall in 2001 was a cool $345 billion [3], well, the IRS still owes about two billion dollars to 1.7M taxpayers for their 2002 returns! If you make under a certain amount, you aren’t required to file a tax return. Well, a bunch of people in that category (1.7M to be exact) were entitled to refunds that they subsequently didn’t get because they didn’t file a return.

What’s kind of funny is that every year, around this time, you read of how much money the IRS failed to pay out 3 years ago (that’s how long people have to collect) because people didn’t file tax returns. What’s even funnier (or decidedly unfunny and very inconvenient) is that in order for you to get your 2002 refund, you’ll have to submit a 2003 and 2004 tax return too (just to see if you perhaps owed money).

via Business Week [4].