1.1 Million Dollars of Taxpayers Money...Is some of it yours??

Back in 2007 an unprecedented amount US citizens failed to file thier taxes and in doing so have provided the IRS with 1.1 million dollars of interest free money to utilize. Interestingly many still have not gone back and filed that year's tax filing. It is estimated that on average of these outstanding individuals an amount of refund is around $640 and in many cases more and with the economy as it is, most certainly a significant amount to take the time to file the return if for nothing more than assistance with the cost of living incresases over the past few years. What is interesting about the year 2007 income tax returns is that it is now at the point of the IRS statute meaning that if you didn't file and you were owed a refund it will revert to the IRS as a donation. Although this may be a plus for the government in that it will be funds utilized for assisting with the federal deficits it isn't much of a help to your household individually. Hence if you are one of these individuals you have until April 18th 2011 to file the past 2007 year's tax filing. Curiously most people who didn't file fear that if they file at this point there will penalties for late income tax filing. Truth be told the IRS does not impose penalty fees if there aren't taxes owed but instead only if taxes that were due were unpaid. Keep in mind that this means although a penalty may not be accessed against the years you did not owe and did not file, penalties WILL apply to years that you didn't file and owed. Further to clearify things if you DO have federally owed items such as delinquent student loans, outstanding child support payments, or any other payments that are IRS accessed funds, they can and most likely will be consumed by these debts first before you receive any of the money due to you in overpaid taxes. Hence, if you are unsure of where you stand due to several years of not filing your taxes for what ever reason, it may be a good idea to get with a tax preparation specialist to help you file and once and for all get your IRS taxation records reviewed so that you can decide the best route to go in getting your social security number cleared up for better credentials in the future. Keep in mind the IRS does make payment arrangements for such individuals that owe and the sum exceeds what they can pay in one payment. Although many folks feel that unpaid items Federally or State owed to the government does not affect thier credit this is untrue in most cases. Long story short take the time out to get your taxes in order so that in the future when it matters most....such as to make major investments such as owning a home, you are in the clear to proceed without any recourse. If you are like the average American you probably are unsure of where to even begin to locate copies of the essential documents to go back and file for tax years you may have neglected to do. No problem with just a little effort in most cases you can utilize this link Order Tax Transcript to request a transcript from the IRS of your past years tax information as submitted to them by various establishments required to report your tax activities by law. Also, if you don't have access to a computer of your own, you may order a transcript by calling 1-800-908-9946. Still a little leary? You still have the option to contact your employers, bank institutions, and creditors you dealt with during the year(s) in question to request such documents as they too are required to keep records. Just keep in mind each of them may take a short period to locate and forward the information to you since most establishments archive records every few years. Hopefully this information is of help to you my readers and you can use it or pass it along to others. As always feel free to pass comments or refer my blogspace to others to follow for periodic information of value in the Real Estate industry.