Category Archives: Tax Refunds

Got Your IRS Refund Yet?

IRS just can’t figure out why they have so many refund checks returned every year.  In a recent news release, they note that they are sitting on more than 99,000 refund checks, accounting for over $153 million, and just don’t know where to find the related taxpayers, since the checks were returned as “undeliverable” by the Post Office.

If that’s you, still looking for your refund from last year, check out the “Where’s My Refund” link on the IRS website:

IRS notes that undelivered refund checks average $1,547 this year.  And they go on to suggest that a way to avoid this problem is for taxpayers to instruct IRS (when they file their annual return either in paper or electronically) to deposit the money directly into the taxpayer’s bank account.  This sounds good, but we’re not particularly in favor of giving anybody (least of all the IRS) personal bank account information.  You never know — the day may come when you owe taxes and can’t pay — in that instance, you may look up one day and find that the meager balance in that bank account of yours has been tapped by Uncle Sam.  Not good.

Back to the unclaimed refund issue — don’t fall for e-mail or other contacts which you may receive from unknown sources claiming that they know IRS owes you money, and asking for personal or banking information so that you can claim your dough.  IRS does NOT contact taxpayers by e-mail for this or any other reason.

‘Quick’ Carry Back Refund Claims

This year hasn’t been a particularly good one, for many taxpayers. As soon as the new year dawns, consider getting your tax act together and, if you have a 2011 net operating loss, or certain unused credits available for carry back, get on the ball and file for a “quick” carry back refund claim.

This expedited procedure allows you to get your refund as quickly as possible — IRS must act on it within 90 days of filing!

Of course, you can choose to “waive” the carry back, and simply allow the loss to move forward. This decision will be a function of not only how much money you have on the table during the two year carry back period, but also should be based on your expectation of the future, and the marginal tax bracket in which you may find yourself then, which may be a higher bracket than in the past. And if you do so elect, you must attach to your 2011 return a statement to the effect that you are electing under IRC Section 172(b)(3) to relinquish the entire carry back period.

But if you want to carry back, get hold of Form 1045 and file it promptly, and in no case more than one year after the end of the tax year in which the loss was sustained, which would be December 31, 2012.